Refer to Figure 21-6. The loanable funds market is in equilibrium, as shown in the figure above
An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium?
A) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
B) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
C) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
D) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
B
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Perfect (first degree) price discrimination:
a. is a common occurrence in situations with many buyers. b. occurs fairly often in situations with only a few buyers. c. is only observed in competitive markets. d. rarely occurs because firms do not have sufficient information to differentiate among specific buyers.
Which of the following is true?
a. During any given year, the size of the economic pie available for allocation to individuals is fixed. b. When the link between worker productivity and reward is weakened, individuals have less incentive to create income. c. If they reduce income inequality, taxes and income transfers will not alter the incentive of individuals to engage in productive activity. d. The total output of an economy is unrelated to the distribution of income.
Compared to a more standard experimental design which would assign observations to a control group or to a treatment group, a synthetic cohort analysis
A. uses a sophisticated algorithm to estimate data for observations in the control group. B. only has a treatment group. C. finds other populations that "mirror" the treatment group in many ways in order to argue that these other populations can serve as a valid control group. D. only has a control group. E. assigns observations to the control or treatment group based on certain demographics such as location or race.
Explain why it was necessary to pass the Clayton Act when the Sherman Act had already addressed the antitrust issue.
What will be an ideal response?