An increase in the demand for loanable funds will occur if there is
A) an increase in the real interest rate.
B) an increase in the nominal interest rate accompanied by an equal increase in inflation.
C) a decrease in the real interest rate.
D) an increase in expected profits from firm investment projects.
D
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The predictions of marginal utility theory
A) contradict the idea that the demand curve slopes downward. B) support the idea that the demand curve slopes downward. C) support the idea that the supply curve slopes upward. D) contradict the idea that the supply curve slopes upward.
Other things the same, if the U.S. interest rate falls, then U.S. residents will want to purchase
a. more foreign assets, which increases the quantity of loanable funds demanded. b. fewer foreign assets, which decreases the quantity of loanable funds demanded. c. more foreign assets, which increase the quantity of loanable funds supplied. d. fewer foreign assets, which decreases the quantity of loanable funds supplied.
When firms add workers and find that the additional workers add less to output than their predecessors did, they are experiencing
A. diminishing returns. B. the division of labor. C. diminishing marginal utility. D. the law of large numbers.
Housing starts increase dramatically in the Spring and decrease dramatically in the Winter. For this reason, it is best to
A. focus on Winter to Spring declines. B. politically adjust the data. C. seasonally adjust the data. D. focus on Spring increases.