If an economic expansion in the economy caused an increase in the demand for loanable funds, what would be the effect on the interest rate and the quantity of funds loaned in the credit market?
A. Interest rates would increase and the quantity of funds loaned would decrease
B. Interest rates would decrease and the quantity of funds loaned would increase
C. Interest rates and the quantity of funds loaned would decrease
D. Interest rates and the quantity of funds loaned would increase
D. Interest rates and the quantity of funds loaned would increase
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Which of the following describes the relationship between net investment and total investment?
a. Net investment = total investment - depreciation b. Total investment = net investment + private investment - depreciation c. Net investment = government investment - private investment - depreciation d. Total investment = net investment - depreciation e. Net investment = government investment - depreciation
Economic analysis indicates that high tax rates will
A) promote wasteful use of resources. B) retard capital formation. C) all of the above. D) reduce productive activity.
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis?
C = $800 + 0.85Yd
I = $350
G = $420
a.$770
b.$1,570
c.$1,150
d.$1,220
e.?$1,220.85