Suppose that a business discovers an opportunity that requires funds to exploit. What effect would this have in the market for loanable funds?
A. It will decrease interest rates and the quantity of funds lent will rise.
B. It will decrease interest rates and the quantity of funds lent will fall.
C. It will increase interest rates and the quantity of funds lent will rise.
D. It will increase interest rates and the quantity of funds lent will fall.
Answer: C
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The unemployment rate equals 100 multiplied by the
A) number of people unemployed divided by the number of people employed. B) number of people unemployed divided by the population. C) number of people unemployed divided by the labor force. D) number of people unemployed divided by the working-age population. E) labor force divided by the number of people unemployed.
One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
Japan and China can both produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will a. import guns
b. have a comparative advantage in guns. c. have an absolute advantage in guns. d. have a comparative advantage in rice.
Which of these is true about regulations imposed on product markets in the United States?
A. Health and safety standards are set by the Food and Drug Administration. B. The Federal Trade Commission determines routes and pricing for railroads, truckers, and interstate bus lines. C. The regulations were originally designed to improve the delivery of specific public goods. D. All of the above are correct.