Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate ________ and the quantity of loanable funds ________
A) falls; decreases
B) falls; increases
C) rises; increases
D) rises; decreases
A
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Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________
A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase
When the domestic currency depreciates, foreign demand for domestic goods increases
a. True b. False Indicate whether the statement is true or false
From 2001 to 2005 there was a dramatic rise in the price of houses. If this rise made people feel wealthier, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
The increase of ice cream sales and property crime rates at the same time shows which of the following?
a. one variable causing another variable b. two variables being caused by a third variable c. three variables having no connection between them d. two variables being caused by two other variables