A decrease in the interest rate due to an increase in the supply of loanable funds is referred to as the __________ effect
A) expectations
B) liquidity
C) income
D) a and c
E) a, b and c
B
You might also like to view...
An international financial crisis is
A) when a major bank defaults. B) the rapid withdrawal of foreign investments and loans from a nation. C) when at least one developing country defaults on its loans. D) when a world leader is deposed from office.
Adverse selection is a
a. Pre-contractual problem b. Post contractual problem c. Post firing problem d. None of the above
Tom's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $80 for 10,000 tents. At that level of output, the firm's average total costs equal
a. $80 b. $90 c. $100 d. $110
Megan used to work at the local pizzeria for $15,000 per year but quit to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her annual profit for her.
A. Dad says her profit is $19,000 and Mom says her profit is $2,400. B. Dad says her profit is $31,000 and Mom says her profit is $16,600. C. Dad says she lost $11,000 and Mom says she lost $26,000. D. Dad says her profit is $9,000 and Mom says she lost $6,000.