The demand curve for loanable funds represents the behavior of:
A. Lenders
B. Savers
C. Borrowers
D. Bankers
C. Borrowers
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An isocost line reveals the
A) costs of inputs needed to produce along an isoquant. B) costs of inputs needed to produce along an expansion path. C) input combinations that can be purchased with a given outlay of funds. D) output combinations that can be produced with a given outlay of funds.
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.
The velocity of money is:
a. money supply divided by prices. b. spending divided by output. c. required monetary reserves divided by income. d. GDP divided by the money supply.
Which of the following is not a solution to the problem of negative externalities due to pollution?
a. create private property rights b. levy pollution taxes c. create obligatory controls d. subsidize the production of the goods e. establish strict limits on the amount of pollution allowed