Which of the following factors would not shift the demand curve for loanable funds?
a. a decrease in the marginal physical product of capital
b. an increase in the marginal physical product of capital
c. a decrease in the price of the good produced by capital
d. an increase in the price of the good produced by capital
e. an increase in the interest rate
E
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Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today. B) decrease their demand for homes six months from today. C) decrease their demand for homes today. D) have no effect on their demand today or six months from today.
Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a $1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) $0.02. B) $4. C) $5. D) $20. E) $2.
What is a normal profit? Is it part of the firm's opportunity costs, total revenue, or neither?
What will be an ideal response?
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A. the firm should increase output. B. the firm should reduce output. C. the firm is maximizing profits. D. we do not know if the firm should increase or reduce without more information.