Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly elastic.
b. The more inelastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate.
c. Monetary policy is usually stronger in nations with elastic real loanable funds demands.
d. Fiscal policy is usually weaker in nations with inelastic loanable funds demands.
e. All of the above are true.
.D
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Which of the following will lead to a movement along the same demand curve?
A. Changes in income B. Changes in the price of substitute goods C. Changes in the price of the product D. Changes in the preference of the consumer
In a planned socialist economy, the dictator should dislike:
a. Horizontal transactions b. Monetary policy c. Ruble control d. Fiscal policy e. All of the above
_________ include inflationary conditions, significant competition, high interest rates, weak economic indicators, shrinking of the money supply by the government, and the political environment.
a. Internal constraints b. External constraints c. Budgets d. Economic environments e. Balance sheets
Asset deflation generally:
A. cannot occur because people will know it will follow asset inflation. B. is more harmful than the preceding inflation was helpful. C. is less harmful than the preceding inflation was helpful. D. is neither good nor bad, it merely redistributes income.