Refer to the diagram. If the supply of loanable funds is S 1 and the demand for loanable funds is D 1 , the equilibrium interest rate and quantity of funds borrowed will be:
A. G and A.
B. F and A.
C. F and C.
D. E and A.
B. F and A.
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A natural monopoly is any market in which competition and entry are restricted by the granting of a public franchise, government license, patent, or copyright
Indicate whether the statement is true or false
Currently in the United States, resale price maintenance agreements ________ illegal per se and ________ judged using the rule of reason approach.
A) are not; are not B) are; are C) are not; are D) are; are not
Suppose your university decides to increase parking fees in order to deal with the shortage of parking spaces. Nevertheless, the president of your student body convinces the university to pay back the amount spent on higher parking fees to students in the form of a rebate at the end of the school year. Therefore, the increase in parking fees will
A. not solve the parking shortage. B. will have no effect since it will be offset entirely by the rebate. C. make the parking shortage even worse. D. reduce demand for parking and hence alleviate the parking shortage.
The supply-side policies of the Reagan and Bush administrations led to high levels of
A. budget surpluses. B. unemployment. C. inflation. D. budget deficits.