How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
a. Households' disposable incomes increase
b. An increase in expected profit
a. Saving increases and the supply of loanable funds curve shifts rightward. The real interest rate falls and the quantity of loanable funds increases.
b. Investment demand increases and the demand for loanable funds curve shifts rightward. The real interest rate rises and the quantity of loanable funds increases.
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In the above figure, the price received by the seller before the tax is ________ per compact disc, and the price received and kept by the seller after the tax is ________ per compact disc
A) $20; $20 B) $20; $10 C) $30; $20 D) $30; $10
Which of the following is NOT a problem in the implementation of industrial policies?
A) Choosing the industry to target B) Knowing the optimum amount of resources to provide the targeted industry C) The encouragement of rent seeking by firms in other industries D) The benefits are partly captured by foreign firms. E) All of the above are problems.
quantity supplied
What will be an ideal response?
Suppose you want to open a T-shirt shop. Which of the following would be most helpful in deciding how to price your T-shirts?
(A) Market demand schedule (B) Demand curve (C) Market demand curve (D) Demand schedule