The interest rate will _____ and the quantity of loanable funds invested will _____ when the government decreases the budget deficit

Fill in the blank(s) with correct word


fall, increase

Economics

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Special interest group Q receives a 1/10,000th slice of the economic pie.  Its net benefit from either an economic growth policy or a transfer policy is $50,000.  In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by  _________________.  This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.

A. $50,000,000; economic growth; transfers B. $500,000; transfers; economic growth C. $500,000,000; transfers; economic growth D. $5,000,000; transfers; economic growth E. none of the above

Economics

A sub-game perfect Nash equilibrium is defined as

A) a set of strategies that are a Nash equilibrium in every subgame of a static game. B) a set of strategies that are a Nash equilibrium in every subgame of a dynamic game. C) a set of strategies that are a Nash equilibrium in a single subgame of a dynamic game. D) the game within the game.

Economics

Suppose two variables are directly related. If one variable rises, then the other variable:

a. also rises. b. falls. c. remains unchanged. d. reacts unpredictably.

Economics

The demand for borrowed funds is a derived demand.

Answer the following statement true (T) or false (F)

Economics