The demand for loanable funds is downward sloping because the ________ the interest rate, the ________ the number of profitable investment projects a firm can undertake, and the ________ the quantity demanded of loanable funds
A) lower; greater; greater
B) lower; smaller; greater
C) greater; greater; greater
D) greater; smaller; greater
Answer: A
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A nation's trade deficit will tend to shrink when its
a. economy is expanding. b. economy is shrinking. c. investment environment is attractive to foreigners. d. economy is growing at a normal rate.
ATMs and human bank tellers:
A. are substitute resources. B. are capital goods. C. have both declined in number because of bank mergers. D. are complementary resources.
In the used car market, the adverse selection problem refers to the fact that a buyer must choose a used car from an undesirable selection of cars.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A) When demand increases, both the price and the quantity increase. B) When demand decreases, the price rises and the quantity decreases. C) When supply increases, the quantity decreases and the price rises. D) When supply decreases, both the price and the quantity decrease.