In the loanable funds market, if the interest rate is above the equilibrium level
A) there is a shortage of saving.
B) expected profit rates fall.
C) government purchases decrease.
D) there is a surplus of saving.
D) there is a surplus of saving
You might also like to view...
An economy operating its plant and equipment at full capacity implies a capacity utilization rate of
A. 40 percent. B. 70 percent. C. 85 percent. D. 100 percent.
The goal of managers is to manage resources in such a way
A) to make them worth as much as they would be in their next best use. B) to make them worth more than they would be in any other use. C) to cover the cost of capital. D) to cover all opportunity costs.
The New Deal legislation passed by President Roosevelt was inspired by
A. economic problems caused by World War I. B. normal business cycles. C. the Irish potato famine of 1927. D. the Great Depression
Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land. B. Economists dislike the way the price mechanism works because it leads to extremely high rents and interest rates. C. The interest rate is especially important to long-term investment projects. D. The projected long-term corporate profits are important when considering investment projects.