If the supply of loanable funds curve shifts right, then the equilibrium
a. interest rate and level of net capital outflows rise.
b. interest rate rises and the equilibrium level of net capital outflow falls.
c. interest rate falls and the equilibrium level of net capital outflow rises.
d. interest rate and level of net capital outflows fall.
c
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Mary has $1,000 and is considering purchasing a $1,000 bond that pays 7 percent interest per year. Mary decides not to buy the bond and holds the $1,000 as cash
If the inflation rate is 4 percent, the opportunity cost of holding the $1,000 as money is A) $40.00. B) $30.00. C) $70.00. D) $110.00. E) $100.00.
Decreasing profit margins indicate a need to increase production in an economy
a. True b. False Indicate whether the statement is true or false
The theory of rational behavior
A. assumes that people will behave in the best interest of society as a whole. B. implies that people will always take the time to make perfectly informed decisions. C. is an assumption that economists make to have a useful model for how decisions are made.
A natural monopolist that is price-regulated at the marginal cost output level will:
a. be producing at the same output and price that an unregulated natural monopolist would choose. b. produce the optimal level of output and earn an economic profit greater than zero. c. produce the optimal level of output and earn a normal profit. d. eventually incur losses if MC is less than ATC.