Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly inelastic.
b. The more inelastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate.
c. Monetary policy is usually stronger in nations with elastic real loanable funds demands.
d. Fiscal policy is usually weaker in nations with elastic loanable funds demands.
e. All of the above are true.
.A
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For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply
A) I only B) II only C) III only D) Both II and III
Tyrell has $50 per week to spend on good A, which has a price of $5, and good B, which has a price of $4 . He buys six units of A and five of B. The marginal utility of the sixth unit of A is 25, and the marginal utility of the fifth unit of B is 20 . Which of the following is true?
a. He is maximizing his utility. b. We cannot tell if he is maximizing his utility unless we know his total utility. c. He is not maximizing his utility and should buy more of A. d. He is not maximizing his utility and should buy more of B. e. He is not maximizing his utility because he is not spending all of his income.
The economy is fully employed when there is no:
a. seasonal unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
At any given price level, equilibrium GDP on the expenditure side occurs when ____.
A. Y = C + I + G ? (X ? IM) B. Y = C + I – G C. Y = C + I + G + (X ? IM) D. Y = C + X + G + (X ? IM)