If at a given real interest rate desired national saving is $60 billion, domestic investment is $30 billion, and net capital outflow is $20 billion, then at that real interest rate in the loanable funds market there is a
a. surplus. The real interest rate will rise.
b. surplus. The real interest rate will fall.
c. shortage. The real interest rate will rise.
d. shortage. The real interest rate will fall.
b
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A real interest rate that causes the quantity of saving supplied to be equal to the quantity of saving (or investment) demanded is an example of the:
A. principle of comparative advantage. B. equilibrium principle. C. principle of increasing opportunity cost. D. scarcity principle.
As a monopolist expands its output:
A) the difference between the demand curve and the marginal revenue curve decreases. B) the difference between the demand curve and the marginal revenue curve increases. C) the slope of the demand curve decreases, while the slope of the marginal revenue curve increases. D) the slope of the demand curve increases, while the slope of the marginal revenue curve decreases.
Along an indifference curve
A. the price ratio is constant. B. the ratio of the marginal utilities is constant. C. the MRS is constant. D. all of the above E. none of the above
Which of the following is true?
a. The natural rate of unemployment is present when the economy is operating at full employment.
b. The natural rate of unemployment is equal to the number of persons unemployed divided by the number of persons in the labor force.
c. The natural rate of unemployment is primarily the result of the ups and downs of the business cycle.
d. Public policy cannot influence the natural rate of unemployment.