If there is excess Supply in the loanable funds framework?
A. Interest Rates are above equilibrium.
B. Total borrowing is greater than total spending.
C. Interest Rates are below equilibrium.
D. Both B & C
E. Both A & C
A. Interest Rates are above equilibrium.
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If firms' expectations about the future become pessimistic so that they think future profits will be lower, then
A) aggregate demand decreases and the AD curve shifts leftward. B) aggregate demand increases and the AD curve shifts rightward. C) the quantity of real GDP demanded decreases, and there is a movement up along the AD curve. D) the quantity of real GDP demanded increases, and there is a movement down along the AD curve. E) the aggregate demand curve does not shift, but potential GDP decreases.
Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
As you move down a demand curve, if a decrease in price from $11 to $9 increased total revenue, then further decreases below $9 would also increase total revenue
a. True b. False Indicate whether the statement is true or false
If both the marginal social benefit of abatement function and the marginal social benefit of abatement function shifted up. a. The greater would be the efficient level of pollution abatement
b. The smaller would be the efficient level of pollution abatement. c. There would be no change in the efficient level of pollution abatement. d. We do not know whether the efficient level of pollution abatement would rise or fall.