An increase in the real interest rate results in which of the following?
A) an increase in the demand for loanable funds
B) a decrease in the demand for loanable funds
C) an increase in the quantity of loanable funds supplied
D) Both B and C will occur as a result of an increase in the real interest rate.
C
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Which of the following is the reason why pharmaceutical firms are NOT monopolistically competitive?
A. Pharmaceutical firms sell differentiated products. B. There are many buyers in the market. C. There are many sellers in the market. D. There are barriers to entry in the market, like patents.
What three assumptions are used in the chapter to keep the analysis relatively simple?
What will be an ideal response?
A decrease in taxes on business investments will increase aggregate supply.
Answer the following statement true (T) or false (F)
Refer to Scenario 14-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.