A decrease in expected profit
A) lowers the equilibrium real interest rate.
B) decreases the supply of loanable funds.
C) increases the supply of loanable funds.
D) increases the demand for loanable funds.
E) raises the equilibrium real interest rate.
A
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Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of
A) product differentiation. B) perfect competition. C) oligopolistic behavior. D) price taking behavior.
Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs
Indicate whether the statement is true or false
In the figure above, points U, V. Y, and Z show
A) an inefficient allocation of societies scarce resources. B) possible combinations of televisions and personal computers. C) a constant trade—off between televisions and personal computers. D) society prefers more televisions than computers.
A country's production possibilities will grow if it
a. produces more guns than butter. b. lowers its opportunity costs. c. makes more trade-offs. d. increases its resources.