If technological change increases the profitability of new investment for firms, then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________
A) supply; right; fall
B) supply; left; rise
C) demand; right; rise
D) demand; left; fall
Answer: C
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The Federal Reserve System is divided into
A. 7 districts. B. 5 districts. C. 15 districts. D. 12 districts.
Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them. ?
Answer the following statement true (T) or false (F)
We have worked a lot with homothetic production technologies. Suppose instead that a production process that uses capital and labor is quasilinear in capital and that capital is fixed in the short run. Then, assuming the firm currently profit maximizes at a given wage and rental rate, the short and long run slices of the production frontier are identical.
Answer the following statement true (T) or false (F)
The economic benefits of owning a home are greater when home prices are
a. falling and interest rates are high. b. rising and interest rates are low. c. rising and interest rates are high. d. falling and interest rates are low.