Which of the following is likely to happen if people suddenly become more willing to lend money?
a. An increase in demand for loanable funds will increase the interest rate
b. An increase in the supply of loanable funds will increase the interest rate.
c. An increase in the supply of loanable funds will decrease the interest rate.
d. An increase in demand for loanable funds will decrease the interest rate.
e. A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.
c
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In the above figure, between x = 2 and x = 3, what is the slope of the line?
A) 1 B) -1 C) 2 D) 3
When 4 units of labor are employed, total product is 6 units; when 5 units of labor are employed, total product is 9 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 5th unit of labor?
A) $3 B) $5 C) $15 D) $45
A perfectly competitive firm has a horizontal demand curve because it can sell as much as it wants at the market price.
Answer the following statement true (T) or false (F)
If a bank has $100,000 in checkable deposits, reserves of $20,000 . and no excess reserves, then the required reserve ratio is:
a. 10 percent. b. 20 percent. c. 25 percent. d. 30 percent. e. 50 percent.