The quantity of loanable funds available to a corporation depends on the
A. Price of its stock.
B. Interest rate the company is willing to offer.
C. Present worth of the company's dividends.
D. Dividends the company is willing to pay.
Answer: B
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Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
According to the law of demand:
A. Price and quantity demanded are inversely related. B. Price is constant along a particular demand curve. C. The demand curve will shift rightward as price increases. D. Businesses will produce more as price increases.
Investment spending includes spending on:
A. capital goods, residential housing, and changes in inventories. B. stocks, bonds, and other financial instruments. C. durables, nondurables, and services. D. goods and services by federal, state, and local governments.
The economy experiences an increase in the price level and a decrease in real domestic output. Which is a likely explanation?
A. Productivity has increased. B. Excess capacity has decreased. C. Input prices have increased. D. Government regulations have been reduced.