Other things equal, an increase in the productivity of capital goods will:
A. increase the demand for loanable funds and decrease the equilibrium interest rate.
B. increase the demand for loanable funds and increase the equilibrium interest rate.
C. increase the supply of loanable funds and decrease the equilibrium interest rate.
D. increase the supply of loanable funds and increase the equilibrium interest rate.
Answer: B
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An oligopoly firm is similar to a monopolistically competitive firm in that
A) both operate in a market in which there are significant entry barriers. B) both firms face the prisoner's dilemma. C) both firms have market power. D) both firms are in industries characterized by interdependence of firms.
If Country A's reserve account is equal to +$300 billion, then:
a. There is an excess demand for Country A's currency in the foreign exchange market that is being met by the central bank selling enough domestic currency to make up the difference. b. There is an excess supply of Country A's currency in the foreign exchange market that is being met by the central bank buying enough domestic currency to make up the difference. c. Country A's reserves account cannot $300 billion. It must equal 0. d. Country A's current account must equal = -$300 billion. e. Country A's current account minus capital account must equal-$300 billion.
An appreciation of the U.S. dollar against foreign currencies tends to __________ U.S. net exports and shift the U.S. AD curve to the __________
A) raise; right B) raise; left C) lower; right D) lower; left
Which of the following best describes an economy with full employment?
A. "Full employment occurs only when the economy has a zero percent unemployment rate." B. "No person is unemployed for whatever reason." C. "The level of unemployment that corresponds to the normal friction in the labor market." D. "Everyone who is looking for a job will have one."