An increase in the budget deficit makes domestic interest rates
a. rise because the supply of loanable funds shifts left.
b. fall because the supply of loanable funds shifts left.
c. rise because the demand for loanable funds shifts right.
d. fall because the demand for loanable funds shifts right.
a
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Shelly purchases a leather purse for $400. One can infer that:
A. her reservation price was less than $400. B. she paid too much. C. her reservation price was at least $400. D. her reservation price was exactly $400.
Instrument relevance
A) means that the instrument is one of the determinants of the dependent variable. B) is the same as instrument exogeneity. C) means that some of the variance in the regressor is related to variation in the instrument. D) is not possible since X and u are correlated and Z and u are not correlated.
Suppose Joan uses her savings to purchase computer equipment for her new consulting business. Soon after this, the market interest rate rises. As a result, her
a. explicit costs rise immediately b. accounting profit falls immediately c. accounting profit rises immediately d. economic profit rises immediately e. economic profit falls immediately
Which of the following is an example of a nonrival good?
a. food b. an automobile c. a view of the sun rising d. public housing e. a private apartment