There is a positive relationship between the demand for loanable funds and the real interest rate
Indicate whether the statement is true or false
FALSE
You might also like to view...
If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches, the Italian current account balance ________, and the Italian financial account balance ________
A) rises; rises B) rises; is unchanged C) is unchanged; is unchanged D) is unchanged; rises
As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. does not change; does not change B. increases; increases C. increases; decreases D. decreases; increases
The midpoint formula for elasticity of demand solves the problem of:
A. whether elasticity of demand is really positive or negative. B. whether to use quantity or price in the numerator. C. which price or quantity to use as the initial value of the variable. D. whether to use quantity demanded or supplied.
The main decision for a profit-maximizing perfectly competitive firm is not what ________ but what ________.
A. level of output to produce; total revenue to achieve B. price to charge; level of output to produce C. price to charge; total cost to achieve D. level of output to produce; price to charge