If, at the current interest rate, the quantity of loanable funds supplied is less than the quantity of loanable funds demanded, then
A) the supply of loanable funds curve shifts leftward and the real interest rate rises.
B) the real interest rate falls.
C) the supply of loanable funds curve shifts leftward and the real interest rate falls.
D) the real interest rate rises.
E) the supply of loanable funds curve shifts rightward and the real interest rate rises.
D
You might also like to view...
Venture capital firms attempt to overcome the principal-agent problem by
A) investing only in industries with high profit rates. B) charging high interest rates on loans. C) holding large equity stakes in the firms they invest in. D) avoiding investing in common stock.
According to Keynes, money wages
a. would adjust in the short run in order to maintain full-employment. b. are inflexible in the short run are cannot guarantee full-employment levels of output. c. are inflexible and fall as the price level rises. d. are more flexible downward than upward direction.
Stagflation exists when prices
a. rise and unemployment falls. b. rise and unemployment rises. c. fall and unemployment rises. d. fall and unemployment falls.
By definition, economics is the study of
A) how to make money in the stock market. B) how to make money in a market economy. C) the choices people make to attain their goals, given their scarce resources. D) supply and demand.