The figure above shows the loanable funds market. If the real interest rate is 2 percent, then
A) there is a surplus in the loanable funds market.
B) there will be a leftward shift in the demand for loanable funds curve.
C) there will be government intervention in the market to make sure there is no credit crisis.
D) there is a shortage in the loanable funds market
E) the demand for loanable funds curve will shift rightward.
D
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Why did some of the formerly Communist countries of Eastern Europe have inflation rates over 100%, while others didn't? Which factor was more important in explaining the differing inflation rates, real money demand or nominal money supply? Why did
the countries with high inflation rates allow inflation to get so high?
Suppose the demand for a good is currently unit elastic over the relevant range. Then the producer of a substitute good goes out of business and stops producing it. As a result, demand over that range is now likely to be a. Unit elastic
b. Relatively elastic. c. Relatively inelastic. d. Perfectly inelastic.
If the short run elasticity of demand for bus service is 1.01, we would expect the long run elasticity of demand to be: a. relatively inelastic. b. greater than 1.01
c. equal to 1.01. d. less than 1.01.
When designing public policies, which income group would philosopher John Rawls argue needs the most attention?
a. Individuals located in the bottom fifth of the income distribution. b. Individuals located at the average income level. c. Individuals located in the top fifth of the income distribution. d. Individuals located in the top five percent of the income distribution.