The supply of loanable funds curve is upward-sloping because a rise in the interest rate
a. decreases the opportunity cost of firms' investment spending
b. stimulates the economy
c. decreases the opportunity cost to households of consuming
d. increases the opportunity cost to households of consuming
e. increases the government's desire to run a budget deficit
D
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Suppose that a new advertising campaign extolling the virtues of apple juice is successful, and a major freeze destroys half of the country's apple cro
A) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls. B) The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall. C) The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall. D) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises.
Provide the definition for a regressive tax and give an example
What will be an ideal response?
According to the table shown, what is the firm's marginal cost from producing the 2nd unit?
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. $10.00
B. $7.50
C. $27.50
D. $20.00
Citizens Bank confronts a reserve requirement of 20 percent and currently holds millions of dollars in excess reserves. If a depositor withdraws $35,000 . the excess reserves of the bank will
a. decline by $7,000. b. decline by $35,000. c. decline by $28,000. d. increase by $7,000.