The real interest rate bringing the supply of saving equal to the demand for saving is an example of the:
A. cost-benefit principle
B. equilibrium principle.
C. scarcity principle.
D. principle of increasing opportunity cost.
Answer: B
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A change in demand would be illustrated by
a. a drop in price, which causes people to buy more. b. an increase in price, which causes people to buy less. c. a change in people’s preferences that causes them to buy either more or less than before. d. All of these.
The clearing corporation associated with the Chicago Board of Trade consists of
A) government regulatory bodies. B) major commercial banks. C) members of the exchange. D) major corporations.
A decrease in the interest rate, other things constant, will: a. shift the supply of loanable funds curve to the left. b. shift the supply of loanable funds curve to the right. c. decrease the quantity of loanable funds demanded. d. decrease the quantity of loanable funds supplied
e. shift the demand for loanable funds curve to the right.
When the Fed decreases the discount rate, it makes it easier for banks
a. to decrease their reserves by borrowing from the Fed, causing the money supply to shrink b. to increase their reserves by borrowing from the Fed, causing the money supply to grow c. to protect against the inevitable accompanying increase in the legal reserve requirement d. to convert its loans into deposits e. to write off its obligations to the Fed