Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor Corporation decides to make this investment at the going real interest rate, then
A) Ford's profits will decline.
B) the demand for loanable funds increases.
C) the supply of loanable funds increases.
D) the quantity of loanable funds demanded increases.
E) saving increases.
B
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The interest rate that banks charge other banks for loans is the
A) discount rate. B) prime rate. C) federal funds rate. D) Treasury bill rate.
When an economy is at its natural rate of unemployment, which of the following will be true?
A) Only structural unemployment as a result of technological change will exist in the economy. B) The labor force participation rate will be 100%. C) The unemployment rate will be greater than 0%. D) The unemployment rate will be 0%.
Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?
A) It has doubled. B) It has decreased. C) It has increased by more than eight times. D) It has increased twenty times.
If the cross-price elasticity of two goods is negative, then the two goods are
a. necessities. b. complements. c. normal goods. d. inferior goods.