Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then
A) prices rise and inflation occurs.
B) there is a surplus of loanable funds.
C) there is a shortage of loanable funds.
D) there is neither a shortage nor surplus of loanable funds.
B
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Fixed costs of production in the short run
A. are low in proportion to variable costs in the short run. B. are a function of the level of variable costs. C. increase as the firm produces more output. D. cannot be reduced by producing less output.
Stock options make managers who receive them have exactly the same goals as shareholders
Indicate whether the statement is true or false
The supply of bonds to the bond market
a. is positively related to the demand for stocks b. is inversely related to the interest rate c. is positively related to income d. is positively related to the demand for bonds e. only changes if new bonds are issued
Unrestrained monopolies are criticized because they restrict output and reduce innovation
a. True b. False Indicate whether the statement is true or false