Which of the following is correct?
a. In a closed economy, equilibrium in the market for loanable funds occurs where saving = investment.
b. Investment is the source for the supply of loanable funds.
c. If there is a surplus in the market for loanable funds, the interest rate rises.
d. All of the above are correct
a
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What is the multiplier effect and when do multiplier effects occur?
What will be an ideal response?
A positive externality arises in a situation where a third party, who is not part of a market transaction, _____
a. fails to allocate resources efficiently b. suffers from a market transaction by others c. benefits from a market transaction by others d. pays a pollution tax to balance social costs
Because central banks intervene in currency markets, the term ____ has been used to describe the system.
A. planned float B. controlled float C. flexible D. dirty float
As unemployment rose during the recession of 2007-2009, black teenage unemployment
A. remained essentially unchanged. B. fell to 18.2%, a rate less than half that of white teenagers. C. rose to 18.2%, a rate less than half that of white teenagers. D. rose to 49.2%, a rate more than twice that of white teenagers.