Assume that a perfectly competitive financial market for loanable funds is in equilibrium. Which of the following is most likely to occur to the quantity demanded and quantity supplied of loanable funds if the government imposes an effective interest rate ceiling?
A) Increase/Increase
B) Increase/Decrease
C) No change/No change
D) Decrease/Increase
E) Decrease/Decrease
Ans: B) Increase/Decrease
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Refer to the figure above. The slope of the production function between ________ and ________ indicates negative returns to labor
A) Point B; Point C B) Point A; Point C C) Point A; Point B D) the origin; Point A
Anthony closes out his account in which he deposited $500 five years ago at an interest rate of 5%. Mark closes out his account in which he deposited $500 ten years ago at an interest rate of 5%. Who had more in their account? About how much more did he have?
What is owner's equity?
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