Interest rates are determined by the supply and demand for
A) money.
B) capital goods.
C) loanable funds.
D) foreign currencies.
E) stocks.
C
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According to the monetary rule, for price stability given real growth in the economy of 3 percent annually, the money supply should
A. decrease 1% each year. B. decrease 3% each year. C. increase 1% each year. D. increase 3% each year.
If you look for a job for eighteen months after graduation, but fail to generate an offer, even after lowering your expectations, the economy is probably in the business cycle phase called a:
A. recession. B. peak. C. boom. D. recovery.
If ethanol production is expected to increase the price of corn, U.S. farmers will likely
A) shift the supply of corn to the left. B) shift the supply of corn to the right. C) reduce the production of corn by sliding down the corn supply curve, all else equal. D) increase the production of corn by sliding up the corn supply curve, all else equal.
In a competitive market, the demand and supply curves are Q = 12 - P and Q = 5P, respectively. If output is fixed at Q = 11, what is the amount of the resulting deadweight loss?
A) 0 B) 0.6 C) 11.4 D) 15