Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment?
a. the supply of loanable funds shifted right.
b. the supply of loanable funds shifted left.
c. the demand for loanable funds shifted right.
d. the demand for loanable funds shifted left.
a
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Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. What is the marginal cost to you at the socially efficient noise level?
A. $0.75 B. $0.29 C. $0.24 D. $0.25
What does limited liability mean?
A) The personal assets of the owners cannot be claimed if the business is bankrupt. B) Anybody with a liability against a firm can claim only what their liability refers to. C) The owners of the business are personally responsible for paying expenses incurred by the business. D) Only employees can have a claim on the assets of the business.
In response to a positive technology shock, which prediction of the sticky price model is difficult to reconcile with the data?
A) Output increases. B) Employment decreases. C) The price level decreases. D) Money is procyclical.
A profit-maximizing firm in a competitive market will continue to hire more workers when
A. the marginal factor cost is less than the marginal revenue product of the additional workers. B. the marginal factor cost is less than zero. C. the marginal factor cost equals the marginal revenue product of the additional workers. D. the marginal factor cost exceeds the marginal revenue product of the additional workers.