If the real interest rate
A) falls, there is a movement along the supply curve of loanable funds to a lower quantity of loanable funds .
B) rises, the supply of loanable funds curve shifts leftward.
C) rises, the supply of loanable funds curve shifts rightward.
D) falls, there is a movement along the supply of loanable funds curve to a higher quantity of saving.
E) falls, the supply of loanable funds curve shifts leftward.
A
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A) the problem of adverse selection B) the problem of moral hazard C) ornamental torsion D) the asymmetric innovation problem
If Brazil experienced a period of rapid and unexpected inflation, causing Brazilians to lose confidence in the local currency (real) as a store of value, which of the following would be least likely to occur?
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While specialization and exchange were very important to Adam Smith in 1776, they have largely lost their importance in the 21st century
a. True b. False Indicate whether the statement is true or false