An increase in the real interest rate does which of the following?
A) increases the demand for loanable funds B) reduces saving
C) reduces consumption spending D) reduces the demand for loanable funds
C
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Expectations that disposable income will increase in the future will _____
a. shift the current consumption function upward b. shift the current consumption function downward c. result in an upward movement along the current consumption function d. make the current consumption function flatter e. make the current consumption function steeper
. Central banks, as they conduct monetary policy, inevitably affect only ___________, with no lasting impact on ___________ in the long run.
A. prices; employment B. employment; prices C. output; prices D. demand; employment
For cartels, as the number of firms (members of the cartel) increases,
a. the monopoly outcome becomes more likely. b. the magnitude of the price effect decreases. c. the more concerned each seller is about its own impact on the market price. d. the easier it becomes to observe members violating their agreements.
Monopolistically competitive firms:
A. realize normal profits in the short run but losses in the long run. B. incur persistent losses in both the short run and long run. C. may realize either profits or losses in the short run but realize normal profits in the long run. D. persistently realize economic profits in both the short run and long run.