In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit rises, the amount of loanable funds demanded will be
A) less than $450 billion.
B) $450 billion.
C) between $300 billion and $450 billion.
D) greater than $450 billion.
D
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The money multiplier _______
A. increases if banks increase their desired reserve ratio B. increases if the currency drain ratio increases C. is 1 if the desired reserve ratio equals the currency drain ratio D. decreases if banks increase their desired reserve ratio
To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the
A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy.
For an economy as a whole,
a. wages must equal profit. b. consumption must equal income. c. income must equal expenditure. d. consumption must equal saving.
In the open-economy macroeconomic model, the
a. exchange rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow. b. exchange rate adjusts to equate national saving with the sum of investment and net capital outflow. c. interest rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow. d. interest rate adjusts to equate national saving with the sum of investment and net capital outflow.