What are the factors that change investment demand and shift the demand for loanable funds curve?
What will be an ideal response?
Investment demand changes with the changes in the expected profit. The expected profit depends on technological change. Investment increases and so the demand for loanable funds curve shifts rightward when technology advances.
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It is argued that a tariff may help promote employment in a single industry, but is not likely to help employment in general. Discuss
What will be an ideal response?
A monopsonist in the labor market has
A) a perfectly elastic labor supply. B) a decreasing average variable cost. C) an upward sloping labor supply curve. D) a downward sloping marginal revenue product curve.
Today, the most common exchange rate arrangement in the world is
A) the fixed exchange rate system. B) the gold standard system. C) the managed floating system. D) the freely floating exchange rate system.
An increase in quantity demanded of a good is caused by
A) a decrease in income. B) a decrease in the price of a substitute. C) a decrease in the price of the good. D) a change of tastes.