The demand for loanable funds is downsloping:
A. because businesses find that more investments are profitable at low interest rates than at
high interest rates.
B. because households are willing to save more at high interest rates than at low interest
rates.
C. only when the nominal interest rate exceeds the real interest rate.
D. because the amount of profitable business investment varies directly with the interest rate.
Answer: A
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In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate decreases and nominal GDP increases. B. The interest rate decreases and nominal GDP decreases. C. The interest rate increases and nominal GDP decreases. D. The interest rate increases and nominal GDP increases.
Graphically we can illustrate a firm with price setting ability by drawing its demand curve as ________
A) downward sloping B) upward sloping C) horizontal D) vertical
Refer to the Article Summary. Explain how the declining labor force could have led to the decrease in the unemployment rate
What will be an ideal response?
The period of expansion ends with a ________ and the period of recession ends with a ________
A) business cycle peak; business cycle peak B) business cycle trough; business cycle trough C) business cycle peak; business cycle trough D) business cycle trough; business cycle peak