The demand for loanable funds
A) increases if wealth increases.
B) increases if the expected rate of profit decreases.
C) increases in an expansion and decreases in a recession.
D) increases if population growth declines.
E) decreases in an expansion and increases in a recession.
C
You might also like to view...
According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall. B) The production possibilities frontier will shift inward in the future. C) Fewer goods will be produced for consumption today. D) Future economic growth will decline.
Which of the following defines the "medium of exchange" function of money?
a. To provide a common measurement of the relative value of different goods and services. b. The ability of money to hold value over time. c. The materials used manufacture money are of medium grade so that people will not hoard money for its commodity value. d. Money that is widely accepted in exchange for goods and services.
If the market supply curve slopes upward
a. each unit of the good costs more to produce than previously produced units did b. each unit of the good is worth more than the market price c. each unit of the good is worth the market price paid for it. d. the market is efficient e. the market must be imperfectly competitive
Mutual funds are a type of financial intermediary
a. True b. False Indicate whether the statement is true or false