Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) firms expecting higher future profits.
B) firms expecting lower future profits.
C) households expecting higher future income.
D) in increase in the default risk.
A
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How long does it take a firm to get to the long run?
a. one week b. one month c. one year d. it depends on the firm--some firms may be less than a year, some more.
Local cable television companies frequently are monopolists
a. True b. False Indicate whether the statement is true or false
Exhibit 19-3 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 20,000 Checkable deposits$100,000 Excess reserves0 Loans 80,000 Total$100,000 Total$100,000 Assume all banks in the system started with balance sheets as shown in Exhibit 19-3 and the Fed made a $100,000 open market purchase. The result would be a(n):
A. $500,000 expansion of the money supply. B. $100,000 expansion of the money supply. C. $20,000 contraction of the money supply. D. infinite expansion of the money supply.
East Asian economies have grown
A) rapidly because of high saving rates. B) rapidly despite a lack of property rights. C) slowly because of a lack of property rights. D) slowly because of low saving rates. E) rapidly because they virtually eliminated international trade.