An increase in the interest rate reduces the opportunity cost of holding money
a. True
b. False
B
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A decrease in the government budget deficit decreases the ________ loanable funds and an increase in the government budget surplus increases the ________ loanable funds
A) demand for; demand for B) demand for; supply of C) supply of; demand for D) supply of; supply of
One could argue that price competition among oligopolistic firms is highly likely to cause the revenues of individual firms to decline, while competition on the basis of product differentiation could cause demand, and total revenues, of individual
firms to increase. Indicate whether the statement is true or false
Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?
a. $21,000 b. $28,000 c. $7,000 d. $14,000
Draw an appropriate diagram to represent the business cycle and label each of the five phases. Provide a brief description of each phase