Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly elastic.
b. The more elastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate.
c. Monetary policy is usually stronger in nations with elastic real loanable funds demands.
d. Fiscal policy is usually weaker in nations with elastic loanable funds demands.
e. All of the above are true.
.B
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If stock exchanges did not exist,
A. the risk to the investor of buying stocks would be much greater. B. the economy’s resources could be more efficiently allocated among firms. C. there would be no organized way for firms to issue stock. D. investment banks would no longer play a role in handling stocks.
In the above figure, the long-run average cost curve exhibits diseconomies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.
Since 1994, obesity rates in the United States
A) have been on a slow and steady decline. B) have increased in all 50 states. C) have primarily increased in the Southeast and remained constant or slightly decreased in the remainder of the country. D) have remained fairly constant throughout the country.