The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect.
B) an intertemporal substitution effect.
C) an atemporal substitution effect.
D) a temporary substitution effect.
B
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If the credit supply curve of an economy shifts to the left and the credit demand curve remains unchanged, ________
A) its real interest rate will rise B) its real unemployment level will fall C) its real interest rate will fall D) its real output will increase
Short-term loans between banks are called
A) federal funds. B) repurchase agreements. C) repos. D) discount loans.
According to the efficient markets theory of stock prices, who are the primary beneficiaries of a sudden rise in demand for a firm's stock?
a. the consumers of the firm's products b. the current shareholders at the time of the rise in demand c. the investors who buy the firm's stock shortly after the rise in demand d. the investors who sell their shares just before the rise in demand e. the investors who have been carefully watching stock price patterns
Global climate change will not
A. affect the migration patterns of animals. B. affect the amount of expected water in lakes, rivers, and streams. C. make it harder to grow crops. D. harm those living in coastal areas.