When the price level rises in the United States, there is increased demand for loanable funds, ceteris paribus. Which concept is exemplified?

a. foreign trade effect
b. transfer payment effect
c. wealth effect
d. interest rate effect


d. interest rate effect

Economics

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The price elasticity of demand for electricity is -0.40. By how much must the price of the electricity decrease in order for sales to rise by 12%?

a. 3%. b. 4.8%. c. 12.4%. d. 30%.

Economics

Transfer programs are so named because they transfer:

a. the burden of poverty alleviation from the church to the state. b. the poverty from the country side to the city. c. the responsibility for maintaining minimum standards of living from the federal government to state governments. d. income from the relatively high-income people to relatively low-income people. e. the incidence of poverty from predominantly ethnic groups to the majority white population.

Economics

The supply curve of labor facing an employer in a perfectly competitive labor market is

a. upward sloping b. downward sloping c. horizontal d. greater than MLC e. the MRP curve

Economics

The principal-agent problem is quite common in large public corporations due to:

A. the fact that the people making the operational decisions are usually not the owners. B. too little regulation by government. C. the fact that large companies employ many people. D. the fact that large corporations generate large sales volumes.

Economics