Other things the same, an increase in the interest rate makes the quantity of loanable funds supplied
a. rise, and investment spending rise.
b. rise, and investment spending fall.
c. fall, and investment spending rise.
d. fall, and investment spending fall.
b
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If there are 1000 different sellers of a particular good, and they are all charging exactly the same price, that the sellers are probably
A) colluding. B) making a profit. C) oligopolists. D) price takers. E) securing government assistance.
Consider a used car market in which half the cars are good and half are bad (lemons). Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000
If rational buyers are willing to pay $6,000 for a used car, then sellers will agree to sell mostly lemons at this price. What is the term used to describe this situation? A) adverse selection B) an efficient market C) moral hazard D) economic irrationality
The average fixed cost curve always has a negative slope because:
a. marginal costs are below average fixed costs. b. average variable costs exceed marginal costs. c. total fixed costs always decrease. d. total fixed costs do not change as output increases.
Central banks can use _______________________ to reduce the quantity of money and loans in an economy.
a. closed market operations b. public market operations c. open market operations d. private market operations