In the open-economy macroeconomic model, a higher domestic interest rate reduces the quantity of loanable funds demanded
a. True
b. False
Indicate whether the statement is true or false
True
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In the Classical view, the money supply determines
A) interest rates. B) the saving rate. C) aggregate supply. D) the price level.
Figure 3.4 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D2.
Tyrell is consuming X and Y so that he is spending his entire income and MUx/Px = 7 and MUy/Py = 7. To maximize utility, he should consume
A. the same amount of X and Y since he is already maximizing utility. B. less X and more Y. C. less of both X and Y. D. more X and less Y.
An industry is in ________ if firms have no incentive to enter or exit in the ________ run.
A. disequilibrium; long B. disequilibrium; short C. equilibrium; long D. equilibrium; short