When the interest rate rises, the demand for loanable funds falls and the supply of loanable funds rises.
Answer the following statement true (T) or false (F)
False
When interest rates rise, the quantity of funds supplied goes up and the quantity demanded goes down.
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Explain what will happen to the equilibrium price and quantity of satellite TV service if the wages of the workers who provide the satellite TV service increase while at the same time the price of cable television service (a substitute for satellite
TV service) also increases.
The slope of an indifference curve represents the maximum amount of one commodity that a consumer is willing to give up in exchange for one more unit of another commodity
a. True b. False Indicate whether the statement is true or false
Some time ago, the nation of Republica opened up its paper market to international trade. Which of the following results of this policy change is consistent with the notion that Republica has a comparative advantage over other countries in producing paper?
a. The price of paper in Republica decreased as a result of the policy change. b. Republica began exporting paper as a result of the policy change. c. The domestic demand curve for paper shifted to the right as a result of the policy change. d. The domestic quantity of paper demanded increased as a result of the policy change.
Anthony and Addie are playing the ultimatum game, starting with $100 . The coin flip results in Anthony being the one to propose a division of the $100 . Anthony proposes that he gets $99 and Addie gets $1 . Which of the following statements is correct?
a. Because the 99-1 split isn't fair, Anthony should not make this offer. b. Conventional economic theory predicts that Anthony will propose a 99-1 split, just as he did. c. Experimental evidence suggests that Addie will accept the 99-1 split because, even though it isn't fair, it's better than nothing. d. Economic theory predicts that Anthony should choose a 60-40 split to maximize his payoff.