Suppose the market for loanable funds is in equilibrium. If disposable income increases, the equilibrium real interest rate ________ and the quantity of loanable funds ________
A) falls; increases
B) falls; decreases
C) rises; decreases
D) rises; increases
A
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Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Northland's real GDP per person will decline until it equals Southland's. B. Southland's real GDP per person will always be exactly 2 percent less than Northland's. C. Southland's real GDP per person will eventually be greater than Northland's. D. Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's.
Adverse selection in insurance requires that
a. all people face the same risk b. potential customers facing more risk are no more interested in purchasing insurance c. people are not risk averse d. insurers cannot tell higher risk people from lower risk people
An example of economic dualism is a(n)
a. efficient modern farm sector alongside peasant agriculture b. modern urban sector and a traditional, peasant-based rural sector c. efficient export sector and an inefficient, protected import-competing sector d. efficient private sector and an inefficient public sector e. large, market-based sector and a smaller, home-based production sector
Remittances refers to:
A. the portion of money paid to immigrants that is not domestically taxed. B. money paid to immigrants from hosting countries. C. the money immigrants get from the government once they immigrate to a nation. D. money sent home from immigrants working abroad.