Interest rates would __________ if the supply of loanable funds decreased.
A. stay the same
B. decline
C. rise
C. rise
You might also like to view...
If the contribution from capital growth equals 2 percent and the contribution from labor growth equals 4 percent, then GDP ________
A) will grow by 6 percent B) will grow by 8 percent C) will grow by 2 percent D) will change by an unknown percentage
The increase in the price of sugar created by the tariff will lead domestic consumption to fall by ________ tons per year, compared to when the economy is open without the tariff.
A. 40 B. 20 C. 30 D. 10
A US unemployment rate of 1.5% creates labor ____ which will cause ____
a. shortages; deflation b. surpluses; deflation c. shortages; inflation d. surpluses; inflation
According to classical macroeconomic theory, the flexible interest rate
A. is the incentive that encourages businesses to obtain credit. B. will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied. C. will tend to rise when the supply of credit exceeds the demand for credit. D. ensures that saving cannot exceed investment spending for extended periods of time.