Suppose life becomes more unpredictable and households decide to increase their precautionary savings. In this case, the loanable funds model predicts that
A) interest rate goes down, and quantity of borrowed funds increases.
B) interest rate goes down, and quantity of borrowed funds decreases.
C) interest rate goes up, and quantity of borrowed funds decreases.
D) interest rate goes up, and quantity of borrowed funds increases.
A
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________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents
A) Macroeconomics B) Monetary economics C) Microeconomics D) Growth theory
Using a graph, explain the relationship between average cost and marginal cost.
What will be an ideal response?What will be an ideal response?
The increase in the number of sellers of a good would
A. move its supply curve to the left. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. move its supply curve to the right. D. cause a movement along the supply curve to a (higher price, higher quantity) point.
The government uses market share figures contained in the ________to help determine whether or not it will challenge a proposed merger.
A. antitrust prohibition ratio B. Herfindahl-Hirschman Index C. concentration ratio D. Cellar-Kefauver Index