If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
a. there is a surplus and the interest rate is above the equilibrium level.
b. there is a surplus and the interest rate is below the equilibrium level.
c. there is a shortage and the interest rate is above the equilibrium level.
d. there is a shortage and the interest rate is below the equilibrium level.
d
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The real interest rate is negative if the inflation rate
A) equals zero. B) is less than the nominal interest rate. C) exceeds the nominal interest rate. D) is equal to the nominal interest rate. E) exceeds the real interest rate.
Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes
A) ec/(e - c). B) (1 + c)/(e + c). C) (1 - c)/ec. D) 1 - e - c. E) ec - (1/c).
Which is an example of barter?
A. A person trading a desk for a box of tools. B. The purchase of stock on the New York Stock Exchange. C. A person buying clothes at a used clothing store. D. A gift of tuition money from parents to their children.
According to the life-cycle theory of consumption, people tend to ________ during their main working years.
A. consume more than they earn B. save C. accumulate negative wealth D. dissave