Technological change can increase the demand for loanable funds because it
A) decreases the need for additional equipment.
B) increases people's expected future disposable income.
C) lowers the interest rate.
D) has little effect on production cost.
E) can increase the expected profit.
E
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Moving ________ the short-run Phillips curve is equivalent to moving ________
A) downward along; downward along the aggregate demand curve B) downward along; downward along the potential GDP line C) downward along; upward along the aggregate demand curve D) downward along; upward along the potential GDP line E) upward along; upward along the aggregate supply curve
An advantage of a corporation is
A) the ability to raise large sums of financial capital. B) unlimited liability on the part of shareholders. C) the fact that ownership and control are never separated. D) the fact that the corporation is dissolved when one of its owners dies.
Which of the following changes would probably not lead to an increase in aggregate expenditure?
a. an increase in aggregate wage income b. an increased mood of optimism about the nation's economic prospects c. an increase in the value of corporate stocks d. a decrease in the income tax rate e. an increase in the interest rate
The invisible hand principle indicates that when individuals are directed by prices determined in competitive markets, their actions will tend to promote the efficient use of resources
A) even when each market participant cares only about their own self interest rather than the overall efficiency of resource use. B) even if business firms fail to produce goods efficiently. C) only if buyers and sellers personally care about economic efficiency. D) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.