In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?
A) There is a movement to a point such as b on the demand for loanable funds curve DLF0.
B) The demand for loanable funds curve shifts rightward to a curve such as DLF2.
C) The demand for loanable funds curve shifts leftward to a curve such as DLF1.
D) none of the above
A
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If inflation falls from 11% to 5%, there is deflation
Indicate whether the statement is true or false
Lois sells ten sweaters she had knitted to a retail store. The gross domestic product (GDP) of her country _____
a. will increase b. will decrease c. will remain unaffected d. will increase only if the sweaters are as good as the sweaters sold by other retailers e. will increase if the price of each sweater is less than the cost of inputs required
In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month while "American" miners received $70 . Although the wages of both groups tended to rise over time, the gap persisted until at least 1910 . Mexican and American miners did the same work and were equally productive. Economists call this pay differential
a. prejudicial differentials. b. compensating differentials. c. economic discrimination. d. Lorenz discrimination.
When an individual's income goes up, that individual may choose to supply less labor, resulting in a backward-sloping labor supply curve
a. True b. False Indicate whether the statement is true or false