If there is a shortage of loanable funds, then
a. the demand for loanable funds will shift right so the real interest rate rises.
b. the supply of loanable funds will shift left so the real interest rate falls.
c. there will be no shifts of the curves, but the real interest rate rises.
d. there will be no shifts of the curves, but the real interest rate falls.
c
You might also like to view...
Assuming all else equal, if there is a contraction in the quantity of bank account balances, it will cause:
A) a downward movement along the demand curve for reserves. B) a leftward shift in the demand curve for reserves. C) a rightward shift in the demand curve for reserves. D) an upward movement along the demand curve for reserves.
On the eve of World War I, gains for unions included all of the following except:
a. substantial wage gains for members in some industries, including bituminous coal mining. b. the establishment of insurance programs to compensate workers injured on the job. c. political victories, including the elevation of the Department of Labor to cabinet-level status. d. legal protection of the closed shop.
If the Consumer Price Index (CPI) increases from 100 to 200 and the nominal wage increases from $100 to $400, what is the change in the real wage in terms of the beginning year's dollars?
a. +$200 b. +$400 c. +$100 d. +$300 e. -$200
If the long-run supply curve is upward-sloping, it indicates that resource prices fall when:
A. Production in the industry decreases in the long run B. Production in the industry increases in the long run C. New firms enter the industry D. Short-run profits in the industry are positive