Suppose there are no firms, only the government and households. What would be the result if for some reason the supply of saving at every interest rate suddenly fell?
a. Interest rates would fall and the level of saving would fall.
b. Interest rates would fall and the level of saving would not change.
c. Interest rates would rise and the level of saving would not change.
d. Interest rates would rise and the level of saving would fall.
e. Interest rates would not change and the level of saving would fall.
C
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Fixed costs
A) are always sunk. B) are avoidable. C) are sometimes sunk. D) sunk in the short run, but not in the long run.
Under socialism, no markets can operate at all
a. True b. False Indicate whether the statement is true or false
Ed thinks he looks good in tweed. Last week he saw a light-brown tweed sports coat at Dessen's Fine Clothing Store and thought that the $200 price tag was about as much as he was willing to pay. Lucky for him, he noticed an ad in the local paper that night that had attached a $20-off coupon for any purchase at Dessen's over $100 . Using the coupon, he bought the coat. He ended up with the coat
and a a. producer surplus of $80 b. producer surplus of $20 c. consumer surplus of $120 d. consumer surplus of $80 e. consumer surplus of $20
Which of the following is not an example of market failure?
a. Extreme income inequality b. Efficient equilibrium c. Lack of competition d. Externalities