Which of the following occurs if the expected profit increases?
A) Investment demand increases and the demand for loanable funds curve shifts rightward.
B) The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve.
C) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve.
D) The savings increases and the supply of loanable funds curve shifts rightward.
E) Investment demand decreases and the demand for loanable funds curve shifts leftward.
A
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Suppose that the short-run aggregate supply curve is: ?= 2 + 1.5 (Y-10), where ? is inflation and Y is output; and the aggregate demand curve is Y= 11 - 0.5?. The equilibrium output is ________ and the equilibrium inflation rate is ________ %
A) 10; 2 B) 17.5; 2 C) 2; 10 D) 10; 7.5
Prohibiting price increases in situations of true scarcity could best be described as
a. interfering with the "law" of supply and demand. b. thwarting the "law" of increasing returns to scale. c. violating the "law" of increasing cost. d. interfering with the "law" of diminishing marginal utility.
Economists usually assume that ________ is a fixed input in the _______ run.
A) labor; short B) capital; short C) labor; long D) capital; long
During spring break, students have an elasticity of demand for a trip to Cancun, Mexico, of ?4. How much should an airline charge students for a ticket if the price it charges the general public is $420? Assume the general public has an elasticity of ?2.
A. $280 B. $160 C. $210 D. $105