Which of the following happens if the long-run real interest rates fall?
A) The demand for loans fall. B) Employment increases.
C) Nominal wages fall. D) Imports increase.
B
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
The BP curve is upward sloping if assets are perfectly substitutable
Indicate whether the statement is true or false
A firm that is suffering a loss should shut down immediately if total revenue (TR) is less than total variable cost (TVC)
a. True b. False
Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?
a. Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line. b. Waiting in line imposes a cost on the consumer; paying higher prices does not. c. Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output. d. Waiting in line benefits consumers at the expense of producers.