Consider two countries-country A and B. Both countries are exactly similar in all aspects except for one. In country B it is possible for entrepreneurs to borrow money from banks and financial markets
While in country A, there is no loan for entrepreneurshiA) Country A is likely to grow faster than country B.
B) Country B is likely to grow faster than country A.
C) Both countries are likely to grow at the same rate.
D) Resources are likely to be over consumed in country A and under consumed in country B.
B
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Which of the following will shift the supply of loanable funds curve leftward?
A) a decrease in the real interest rate B) a decrease in real wealth C) a decrease in disposable income D) a decrease in expected future income
When two goods are perfect substitutes, the marginal rate of substitution
a. decreases as the scarcity of one good increases. b. is constant along the indifference curve. c. changes to reflect the consumer’s changing preferences for the goods. d. increases as the scarcity of one good increases.
National income minus the amount of national income not going to households is
A. personal income. B. interest income. C. disposable income. D. proprietor's income.
In Macroland there is $12,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 12.5%, deposits in Macroland equal ________ and the money supply equals ________.
A. $96,000,000; $96,000,000 B. $48,000,000; $54,000,000 C. $54,000,000; $54,000,000 D. $48,000,000; $75,000,000