Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds increase?
a. The demand for loanable funds shifts right.
b. The demand for loanable funds shifts left.
c. The supply of loanable funds shifts right.
d. The supply of loanable funds shifts left.
a
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Suppose a perfectly competitive market is in long-run equilibrium with a price of $12. Then there is a permanent increase in demand
As a result, in the short run the market price ________ and in the long run the number of firms ________ and the price is ________ the price was in the short run. A) rises; does not change; is equal to B) rises; increases; higher than C) rises; does not change; lower than D) falls; decreases; is equal to E) rises; increases; lower than
The speculative demand for money shows the relationship between money demand and:
a. income levels. b. interest rates. c. prices d. investment. e. consumption.
Which of the following observations concerning pollution rights is incorrect?
a. It would not allow firms to move into an area that is already as polluted as allowed by EPA standards. b. It allows the greatest value to be generated with a given amount of pollution c. The rights are private property and can be sold. d. Each polluter is motivated to discover and use the cheapest way to reduce pollution.
The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is
a. positive and fairly large so the two types of fish are close substitutes consumers b. positive but close to zero so the two types of fish are in different markets c. negative because consumers like to serve both types as complementary goods d. high so that a price decrease leads to a total revenue increase e. low so that a price decrease leads to a total revenue decrease