Other things the same, when the interest rate rises
a. people would want to lend more, making the supply of loanable funds increase.
b. people would want to lend less, making the supply of loanable funds decrease.
c. people would want to lend more, making the quantity of loanable funds supplied increase.
d. people would want to lend less, making the quantity of loanable funds supplied decrease.
C
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Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:
A. $10,000. B. $40,000. C. $32,000. D. $35,000.
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At above full employment, the economy is producing more than potential output
c. At above full employment, unemployment would be below its natural rate. d. All of the above are true.
The change in cost that results from a one-unit increase in output is called the
A) average fixed cost. B) per-unit variable cost. C) per-unit total cost. D) marginal cost. E) average cost change.
A managed floating exchange rate system is characterised by which of the following:
(a) The exchange rate varies with the market forces of supply and demand. (b) Some intervention by Central Banks is occasionally required. (c) Intervention by Central Banks usually occurs when the currency is either very strong or very weak. (d) All of the above.