An increase in the real interest rate in the United States changes the quantity of loanable funds demanded because
a. U.S. residents will want to buy more foreign assets.
b. Foreign residents will want to buy more U.S. goods and services.
c. U.S. firms will want to purchase fewer U.S. capital goods.
d. All of the above are correct.
c
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The Federal Reserve conducted the policy of quantitative easing primarily when
A) the interest rate was very sensitive to the change in the money supply. B) the interest rate was close to zero. C) the interest rate was relatively high. D) the interest rate was too erratic to be controlled.
Show the effects of a change in the nominal interest rate and a change in real GDP using the demand for money curve
What will be an ideal response?
The primary cause of diseconomies of scale is scarcity of machinery and capital
a. True b. False Indicate whether the statement is true or false
An increase in the number of tomato producers will
a. increase market supply because the price of tomatoes will rise b. increase market supply because market demand will increase as more tomatoes areproduced c. increase market supply because market supply is the sum of all individual tomato producers' supply curves d. increase market demand but leave market supply unchanged e. increase the price of tomatoes