If there is a surplus of loanable funds, then
a. the quantity demanded is greater than the quantity supplied and the interest rate will rise.
b. the quantity demanded is greater than the quantity supplied and the interest rate will fall.
c. the quantity supplied is greater than the quantity demanded and the interest rate will rise.
d. the quantity supplied is greater than the quantity demanded and the interest rate will fall.
d
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This year Pizza Hut makes a total investment of $1.3 billion in new stores. Its depreciation in this year is $300 million. Pizza Hut's gross investment is ________ and its net investment is ________
A) $1.3 billion; $1.6 billion B) $1.0 billion; $1.3 billion C) $1.3 billion; $1.0 billion D) $1.0 billion; $0.7 billion
A growing government budget deficit and national debt reduces economic growth because
A) it insures that future generations will have to pay the debt. B) it reduces public investment. C) it reduces household saving. D) it diverts private savings from the financing of private investment.
Given the scenario described, if the market price of hammers increased from $7 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. more producers would participate in the market. B. only Bob's Hardware would lose surplus. C. both Bob's Hardware and Lace Hardware would lose surplus. D. House Depot is the only producer that will gain surplus.
The law of demand states that:
A. as the price of a good increases, more units are demanded. B. there is a direct relationship between the price of a good and the quantity of the good produced. C. there is a negative relationship between the price of a good and the quantity of the good demanded. D. there is an increase in the need for a good as the price of the good increases.