What is the price of funds in the loanable funds market?
a. The real wage rate
b. The Consumer Price Index
c. The interest rate
d. The profit rate
e. The GDP price index
C
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What do we call the magnitude of the slope of an indifference curve?
What will be an ideal response?
A perfectly competitive market is in long-run equilibrium. At present there are 100 identical firms each producing 5,000 units of output. The prevailing market price is $20. Assume that each firm faces increasing marginal cost
Now suppose there is a sudden increase in demand for the industry's product which causes the price of the good to rise to $24. Which of the following describes the effect of this increase in demand on a typical firm in the industry? A) In the short run, the typical firm increases its output and makes an above normal profit. B) In the short run, the typical firm increases its output but its total cost also rises, resulting in no change in profit. C) In the short run, the typical firm's output remains the same but because of the higher price, its profit increases. D) In the short run, the typical firm increases its output but its total cost also rises. Hence, the effect on the firm's profit cannot be determined without more information.
Fair outcomes are the result of fair rules defines _____
a. a procedural theory of justice b. a constitutional theory of justice c. justice d. a consensus theory of justice
Under the system of fractional reserve banking, the reserve requirement is the ratio of excess reserves to total reserves
a. True b. False Indicate whether the statement is true or false