In the classical model, the supply of funds to the loanable funds market comes from
a. household saving and the government's budget surplus, if any
b. net taxes
c. household saving and the government budget deficit, if any
d. planned investment
e. total income
A
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Refer to Figure 15-4. What is the price charged for the profit-maximizing output level?
A) $13 B) $21 C) $27 D) $34
Lowering the corporate income tax rate ________ the user cost of capital, which ________ investment
A) raises, depresses B) raises, stimulates C) lowers, depresses D) lowers, stimulates
In a collusive oligopoly, joint profits are maximized when a price leader establishes price based on: a. its own demand and cost schedules
b. the market demand for the product and the marginal costs of the various firms. c. the market demand for the product and its own marginal cost schedule. d. the demand curve faced by a typical competitor and its own marginal cost curve.
Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.