Which of the following will happen if there is a fall in the supply of credit in an economy without any change in the demand for credit?

A) The real output will fall. B) The labor demand in the economy will increase.
C) Its consumption expenditure will increase. D) The real interest rate will fall.


A

Economics

You might also like to view...

In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point B, this implies that kiwi fruit and mangoes are

A) both lower in price. B) both inferior goods. C) neither substitutes nor complements. D) None of the above answers is correct.

Economics

Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happens to the marginal expenditure curve?

A) Shifts left B) Shifts right C) Remains the same D) We do not have enough information to answer this question.

Economics

The graph shown demonstrates a tax on buyers. How many fewer units are being sold due to the imposition of a tax on this market?



A. 6
B. 9
C. 3
D. 12

Economics

According to Keynesian theory, the correct fiscal policy action to stimulate the economy would be to:

A. Raise taxes to increase aggregate demand. B. Increase the money supply to increase aggregate supply. C. Increase government expenditures to increase aggregate demand. D. Increase education spending to increase aggregate supply.

Economics