Which of the following is true if there is a shortage of loanable funds?
What will be an ideal response?
The quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium.
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Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun's Law what does real GDP equal?
A) $8.32 trillion B) $8.00 trillion C) $8.16 trillion D) $7.68 trillion E) $7.84 trillion
If a subsidy was imposed on an industry whose production imposed external benefits on others, then the goods' consumers of the good would be ____ and the result would be a(n) ____ in efficiency
a. better off; increase. b. better off; decrease. c. worse off; increase. d. worse off; decrease.
In an open economy, the domestic real interest rate is determined by:
A. domestic investment. B. domestic saving and net capital inflows. C. domestic saving and domestic investment. D. domestic saving, domestic investment, and net capital inflows.
Macro disturbances can be caused by changes in
A. Government spending only. B. Exports only because this is the only type of expenditure that is not controllable. C. Consumption, investment, government spending, or exports. D. Investment only.