The demand for loanable funds curve shifts in response to changes in
A) the amount of household savings.
B) the expected future disposable income.
C) expected profits.
D) the real interest rate.
E) wealth.
C
You might also like to view...
The U-shape of the average variable, average total, and marginal cost curves reflects
A) increasing marginal returns. B) decreasing marginal returns. C) both increasing and decreasing marginal returns. D) decreasing marginal product. E) the point that implicit costs become a smaller fraction of total cost as output increases.
What is the difference between aggregate expenditure and aggregate demand?
What will be an ideal response?
One criticism of monetary policy based on a predetermined steady growth rate in money supply is that
A) wages and prices are sufficiently flexible to allow the economy to restore the natural level of Real GDP on its own. B) the total lag in monetary policy may be too long to allow for effective monetary policy. C) changes in velocity, if not accounted for, can then be a source of price instability. D) a and b E) all of the above
Figure 3.5 illustrates the supply of tacos. If the government offered a subsidy to Mexican restaurants for each taco they produce, this would most likely cause a movement from:
A. point a to point c. B. point c to point b. C. S2 to S1. D. S0 to S1.