As real interest rates fall, firms desire to
a. buy more new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping.
b. buy more new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping.
c. buy less new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping.
d. buy less new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping.
b
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The net increase in a country's stock of international reserves over a year is called a(n):
A. trade surplus. B. balance-of-payments deficit. C. balance-of-payments surplus. D. trade deficit.
The money multiplier is equal to
A) the government spending multiplier. B) 1/(reserve ratio). C) the marginal propensity to consume. D) the reserve ratio.
The natural unemployment rate is higher if
A) many of the new jobs created require skills possessed by the available labor. B) there are fewer two-income households. C) unemployment benefits become more generous. D) efficiency wages are lower. E) there is a decrease in the working-age population.
Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.