If there is a surplus of loanable funds, the quantity demanded is
a. greater than the quantity supplied and the interest rate will rise.
b. greater than the quantity supplied and the interest rate will fall.
c. less than the quantity supplied and the interest rate will rise.
d. less than the quantity supplied and the interest rate will fall.
d
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In the figure above, if no one owns the lake the tax that achieves the efficient outcome is ________ per ton of pesticide produced
A) $30 B) $40 C) $20 D) $10
If the MPC is b, then the multiplier is
A) 1/(1 - b). B) b/(1 - b). C) 1/(1 + b). D) b/(1 + b).
Other things equal, if foreign holdings of U.S. dollars decrease,
A) the balance on the U.S. current account will decrease. B) the balance on the U.S. financial account will decrease. C) the balance on the U.S. capital account will decrease. D) the U.S. balance of payments will decrease.
The optimal allocation of resources is found:
A. where MB = MC. B. at every point along a production possibilities curve. C. where the marginal benefit is at its greatest. D. where the marginal cost is at its lowest.