In the open-economy macroeconomic model, the supply of loanable funds equals
a. national saving. The demand for loanable funds comes from domestic investment + net capital outflow.
b. national saving. The demand for loanable funds comes only from domestic investment.
c. private saving. The demand for loanable funds comes from domestic investment + net capital outflow.
d. private saving. The demand for loanable funds comes only from domestic investment.
a
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Quantity Demanded
What will be an ideal response?
Assume that the demand for apples is downward sloping. If the price of apples falls from $.80 per pound to $.65 per pound, which of the following will occur?
What will be an ideal response?
People will want to buy fewer bonds and the interest rate will rise, as the price level
a) falls by more than 50 percent. b) falls by less than 50 percent. c) remains constant. d) rises.
A perfectly elastic supply curve is expressed graphically as a(n):
A. downward sloping line or curve. B. upward sloping line or curve. C. vertical line. D. horizontal line.