If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, then ________
A) the real interest rate will rise
B) firms will decrease their investment demand
C) people will save more
D) the real interest rate will fall
D
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The entry of new firms into a perfectly competitive market will cause:
A) both the equilibrium price and quantity to increase. B) both the equilibrium price and quantity to decrease. C) the equilibrium price to increase but the equilibrium quantity to decrease. D) the equilibrium price to decrease but the equilibrium quantity to increase.
Income elasticity of demand is expected to be _____
a. relatively high for necessities b. positive for most products c. relatively low for luxuries d. negative for most products e. zero for most products
Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods
a. Workland has higher productivity and higher real GDP per person than Laborland. b. Workland has higher productivity but lower real GDP per person than Laborland. c. Workland has lower productivity but higher real GDP per person than Laborland. d. Workland has lower productivity and lower real GDP per person than Laborland.
National defense argument, infant industries argument, and declining industries argument are arguments in favor of trade restrictions
Indicate whether the statement is true or false