Which is not a reason the demand curve for loanable funds slopes down?
A. The value of the MRP in terms of today’s money shrinks as the interest rate rises.
B. Future returns must be discounted more when the interest rate rises.
C. As the interest rate rises, more and more investments become unprofitable.
D. Production becomes more profitable in the future, reducing required inputs today.
Answer: D
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In an oligopolistic market,:
A. the larger the number of firms and the more elastic the demand, the greater the markup. B. the larger the number of firms and the less elastic the demand, the greater the markup. C. the smaller the number of firms and the less elastic the demand, the greater the markup. D. the smaller the number of firms and the more elastic the demand, the greater the markup.
A bank's required reserves may be held in which two forms?
A. Coins and gold B. Vault cash and deposits at the Fed C. Vault cash and gold D. Deposits at the Fed and gold
Table 14.3Table 14.3 represents 3 markets for used stereos. Which of the markets in Table 14.3 are not in equilibrium?
A. 1 only B. 2 only C. 3 only D. 1, 2, and 3
Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a 25% rate, machine B costs $10,000 and depreciates at a rate of 20%, machine C costs $20,000 and depreciates at a rate of 10%, and machine D costs $17,000 and depreciates at a rate of 11%. The expected real interest rate is 5%.
A. Machine A B. Machine B C. Machine C D. Machine D