Other things remaining the same, the ________ the real interest rate, the ________
A) higher; greater the demand for loanable funds
B) higher; greater the quantity of loanable funds demanded
C) lower; greater the quantity of loanable funds demanded
D) lower; greater the demand for loanable funds
E) lower; greater the quantity of loanable funds supplied
C
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Inflation reduces economic efficiency because it does each of the following except:
A. Obscure information transmitted by prices. B. Distort incentives through interaction with the tax laws. C. Change relative prices. D. Induce people to minimize cash holdings.
Based on the figure above, when the market is unregulated and is in equilibrium, the deadweight loss is
A) $86.25 million per year. B) $56.25 million per year. C) $48.75 million per year. D) $37.50 million per year. E) zero.
Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?
a. land, labor, capital, entrepreneurship b. land, services, labor, capital c. goods, labor, services, capital d. goods, labor, capital, services e. labor, capital, labor, rent
Which of the following incurs a primarily pecuniary cost?
a. a factory’s smog obscuring the sunset b. a defective product causing a fire that burns a house c. noise from a warehouse making neighbors nervous d. the smell from a dogfood factory permeating a neighborhood