A decrease in the interest rate, other things constant, will:
a. shift the supply of loanable funds curve to the left.
b. shift the supply of loanable funds curve to the right.
c. decrease the quantity of loanable funds demanded.
d. decrease the quantity of loanable funds supplied

e. shift the demand for loanable funds curve to the right.


d

Economics

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Suppose rice can be produced in China at a lower cost than in Thailand, while tuna can be produced in Thailand at a lower cost than in China. International competition will

a. destroy the rice market in both countries b. drive China to specialize in rice and Thailand to specialize in tuna c. drive Thailand to specialize in rice and China to specialize in tuna d. cause both countries to reject international specialization e. result in lower total output of rice and tuna

Economics

When an economy expands into an economic boom, automatic stabilizers will tend to

a. enlarge the budget deficit (or reduce the surplus). b. reduce the budget deficit (or increase the surplus). c. ensure that the budget will remain in balance. d. reduce the supply of money and, thereby, retard aggregate demand.

Economics

Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if

a. the demand for American-made automobiles was highly elastic. b. the supply of foreign-produced automobiles was highly inelastic. c. American consumers considered foreign automobiles a poor substitute for American automobiles. d. the demand for American automobiles was relatively constant and highly inelastic.

Economics

An agreement between two duopolists to function as a monopolist usually breaks down because

a. they cannot agree on the price that a monopolist would charge. b. they cannot agree on the output that a monopolist would produce. c. each duopolist wants a larger share of the market to capture more profit. d. each duopolist wants to charge a higher price than the monopoly price.

Economics