When the government increases its borrowing in the loanable funds market, the likely result is ________ loanable funds traded at a ________ interest rate.
A. fewer; higher.
B. more; higher.
C. more; lower.
D. fewer; lower.
Answer: B
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An economic model can be defined as
A. a testable claim that can be evaluated with proper data. B. a representation of a theory or a part of a theory. C. another word for theory. D. a method to distinguish correlation from causation. E. All of these responses are correct.
A perfectly competitive firm's short-run supply curve is
A) its marginal cost curve above the shutdown point. B) its average total cost curve above the minimum of the average variable cost. C) its average variable cost curve above the breakeven point. D) horizontal at the market price.
The distinguishing feature of the land market is that the
a. supply is highly inelastic. b. supply is highly elastic. c. demand is highly inelastic. d. demand is highly elastic.
A balance-of-payments surplus can be reduced with
A. Increased government spending. B. Contractionary monetary policy. C. Increased tariffs and quotas on foreign goods. D. Increased taxes.