In the market for loanable funds, the demand curve:
A. represents savers.
B. is downward sloping.
C. reflects that more people will choose to save the higher is the interest rate.
D. is upward sloping.
B. is downward sloping.
You might also like to view...
Marginal cost a. Is the incremental cost incurred by producing an additional unit of output. b. Is the total cost of production
c. Is the total fixed cost of production. d. None of the above
For an oligopoly, when the quantity effect outweighs the price effect, firms may have the incentive to:
A. increase output. B. decrease output. C. not change the level of output. D. leave the industry.
Investment decisions are based on the trade-off between the:
A. potential profit that could be generated by investment and the cost of borrowing money to finance the investment. B. interest rate that savers will earn and the interest rate that the borrowers will have to pay. C. future value of the loan and the present value of the loan. D. potential profit that could be generated and the willingness of a lender to make the loan.
The country of Zorabia witnesses a huge influx of unskilled illegal immigrants. Which of the following will occur?
a. The equilibrium wage rate in Zorabia will fall. b. The equilibrium wage rate in the market for unskilled labor in Zorabia will fall. c. There will be excess demand for labor in the market for unskilled labor in Zorabia. d. There will be excess supply of labor in the job market for skilled workers.