When the government increases its demand for loanable funds, it causes the demand:
A. for loanable funds curve to shift to the right, which increases interest rates.
B. of loanable funds curve to shift to the left, which decreases interest rates.
C. of loanable funds curve to shift to the right, which decreases interest rates.
D. for loanable funds curve to shift to the left, which increases interest rates.
Answer: A
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The public choice model assumes that government policymakers
A) must promote the public interest at the expense of their own self-interests in order to be re-elected. B) will pursue their self-interests in personal affairs but only if it does not conflict with the public interest. C) are likely to pursue their own self-interests, even if their self-interests conflict with the public interest. D) will often act irrationally in their personal affairs, but will act rationally when they promote the public interest.
What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP. B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP. C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP. D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.
Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal
a. True b. False Indicate whether the statement is true or false
If an increase in the price of one good causes the demand curve for another good to shift to the left, then the two goods are:
A. substitutes. B. complements. C. normal. D. unrelated.