Assuming that Figure 7.1 is a market for money that can be borrowed or saved, Box 1 is 
A. "$*" for the equilibrium amount borrowed/saved.
B. "r*" for equilibrium interest rate.
C. "r" for interest rate.
D. "$" for the amount borrowed/saved.
Answer: C
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Both the principles of rivalry and mutual excludability apply for club goods
a. True b. False Indicate whether the statement is true or false
The economic return to oil resources is called:
a. Rent. b. Wages. c. Profits. d. Interest. e. None of the above.
Suppose option A has a higher expected value than option B. Which of the following statements is, in general, true?
A. A risk-averse person prefers option B to option A. B. A risk-averse person prefers option A to option B. C. A risk-neutral person is indifferent between options A and B. D. Insufficient information to determine.
In the long-run average total cost curve below, the:
A. movement from B to C reflects the law of diminishing returns. B. movement from A to B reflects diseconomies of scale. C. realization of economies of scale would shift the entire curve downward. D. movement from B to C reflects diseconomies of scale.