In the real loanable funds market, the vertical and horizontal axes, respectively, are:
a. Nominal interest rate and nominal loanable funds.
b. Real interest rate and real loanable funds.
c. Real, risk-free interest rate and real loanable funds per time period.
d. Real, risk-free interest rate and real loanable funds.
e. None of the above.
.C
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The four components of aggregate expenditures are:
A. consumption, investment, government spending, and net exports. B. consumption, interest payments, government spending, and net exports. C. consumption, imports, government spending, and net exports. D. consumer durables, investment, government spending, and net exports.
To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S
Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer? A) Makes the budget line steeper B) Makes the budget line flatter C) Parallel outward (rightward) shift D) Parallel inward (leftward) shift E) none of the above
A Gini of 0 implies that:
a. every family has an equal amount of income. b. the top 10% of the families appropriate almost 100% of the total income. c. the bottom 90% of the families have only 10% of the total income. d. the bottom 20% of the families have 80% of the total income. e. only 1 family appropriates the entire national income.
ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus?
a. The price of a dozen eggs increases from 40 cents to 55 cents. b. The price of a dozen eggs increases from 55 cents to 70 cents. c. The price of a dozen eggs increases from 55 cents to 75 cents. d. All of these price increases would cause both companies to experience a loss in producer surplus.