If the interest rate on the loanable funds market is above its equilibrium level,
a. the equilibrium rate will rise
b. people will want to borrow more funds than are available
c. the supply curve of loanable funds will shift to the left
d. there is an excess supply of loanable funds
e. this is an excess demand for loanable funds
D
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At each value of the domestic interest rate, decreases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. increase; increase; decrease C. increase; increase; increase D. decrease; decrease; decrease
The marginal rate of substitution measures the slope of the:
a. total utility curve. b. demand curve. c. budget line. d. indifference curve.
Define the following terms and explain their importance to the study of economics
a. pure monopoly b. barriers to entry c. patent d. natural monopoly e. sunk costs
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 table is
a. 1/6 chair for Ken and 1/3 chair for Traci. b. 1/6 chair for Ken and 3 chairs for Traci. c. 6 chairs for Ken and 1/3 chair for Traci. d. 6 chairs for Ken and 3 chairs for Traci.