In the Supply and Demand of Loanable Funds model presented in Chapter 3, the variable that adjusts to equilibrate the supply and demand for goods and services is:
A. government spending.
B. consumption.
C. taxes.
D. the real interest rate.
Ans: D. the real interest rate.
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A rightward shift in the intertemporal budget line would be caused by ________
A) an increase in future income and wealth B) an increase in future income and a decrease in wealth C) a decrease in future income and an increase in wealth D) a decrease in future income and wealth
According to the permanent income hypothesis, consumption spending depends largely on ________
A) current income B) the savings rate C) a consumer's lifetime resources D) the level of current income plus the value of the assets owned by the household
The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that when this market reaches equilibrium, the marginal
a) cost equals marginal benefit. b) benefit exceeds marginal cost. c) cost exceeds marginal benefit. d) cost equals zero.
Which of the following is not one of the four factors that affects the intensity of competition in Porter's Five Forces Model:
Intensity of competition The bargaining power of buyers The bargaining power of suppliers The threat of new entrants