From 2009 through 2012, the long-term real interest paid by the safest U.S. corporations fell from 4 percent to 2 percent. During that same period, the federal funds rate was roughly constant at 0.25 percent a year. A fall in the federal funds rate _______ the supply of bank loans and the supply of loanable funds, and _______ the equilibrium real interest rate.
Fill in the blank(s) with the appropriate word(s).
increases; lowers
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An increase in the quantity of money shifts the aggregate demand curve rightward
Indicate whether the statement is true or false
Which of the following economists is/are considered the leader(s) in the theory of market behavior?
(a) Alfred Marshall (b) Adam Smith (c) David Ricardo (d) All of the above
The above figure shows four different markets with changes in either the supply curve or the demand curve
Assuming coffee and tea are substitutes, which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop? A) Graph A B) Graph B C) Graph C D) Graph D
A single price profit maximizing monopolist is inefficient because
A. it perfectly price discriminates when it can. B. it produces too much output. C. it produces where price equals marginal cost rather than where marginal cost equals marginal revenue. D. the sum of consumer and producer surplus is less than it could be.