If the real interest rate is below the equilibrium real interest rate
A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall.
B) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise.
C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.
D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.
B
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A tariff can best be described as
A. an excise tax on an imported good. B. a government payment to domestic producers to enable them to sell competitively in world markets. C. an excise tax on an exported good. D. a law that sets a limit upon the amount of a good that can be imported.
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the number of workers hired in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.
Firms will employ each input up to the point that its price equals its marginal revenue product.
Answer the following statement true (T) or false (F)
Capitialism= Economic system based on accumulation and investment of capital by individuals who then use it to produce goods or services.
Answer the following statement(s) true (T) or false (F)