The higher the real interest rate, the ________ investment projects firms can profitably undertake, and the ________ the quantity of loanable funds they will demand
A) more; smaller
B) more; greater
C) fewer; greater
D) fewer; smaller
D
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A friend is currently earning income but does not expect to earn income in the future. When the interest rate rose, I observed him saving less. From this, I can conclude that current consumption is an inferior good for my friend.
Answer the following statement true (T) or false (F)
Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost
a. True b. False Indicate whether the statement is true or false
The unregulated portion of the economy involving goods and services that are produced and exchanged without monetary transactions is known as
a. the underground economy. b. the secret economy. c. the capital consumption. d. transfer payments.
Social Security is indexed by the CPI. As a result
a. it is "over-indexed.". b. it ignores inflation c. it is "under-indexed.". d. it is "un-indexed.". e. it is "over-subscribed.".