If the demand for loanable funds shifts to the right, then initially there is a
a. surplus so the interest rate will fall.
b. surplus so the interest rate will rise.
c. shortage so the interest rate will fall.
d. shortage so the interest rate will rise.
d
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Consider the market for cellular phones. Which of the following shifts the demand curve leftward?
A) studies showing using cellular phones can cause brain cancer B) a decrease in the price of cellular phones C) a decrease in the quantity demanded of cellular phones D) an increase in the services provided by cellular phones, such as text messaging E) an increase in the price of cellular phones
Which of the following is the BEST example of a public good?
A) public transportation by bus B) clean air C) community swimming pools for which the user must pay a fee D) postal services
If, at a firm's projected sales level, the marginal cost is $125, the average cost is $150 and the markup is 20 percent, then its selling price is
A) $125. B) $150. C) $165. D) $180.
Which of the following never assumes, either implicitly or explicitly, independence between nominal and real variables?
A) the AS curve B) the Phillips curve C) Okun's law D) the classical dichotomy E) none of the above