Other things the same, an increase in the U.S. interest rate
a. raises net capital outflow which decreases the quantity of loanable funds demanded.
b. raises net capital outflow which increases the quantity of loanable funds demanded.
c. lowers net capital outflow which decreases the quantity of loanable funds demanded.
d. lowers net capital outflow which increases the quantity of loanable funds demanded.
c
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How do financial intermediaries reduce risk?
What will be an ideal response?
Which of the following is true of a Nash equilibrium?
A) A game can have only one Nash equilibrium. B) No player can improve his payoff by changing his strategy once in Nash equilibrium. C) A Nash equilibrium cannot occur if each player is aware of the strategies of other players. D) A Nash equilibrium occurs if each player earns a zero payoff irrespective of the strategy he chooses.
In the short run, if a firm shuts down, its loss is equal to
a. $0 b. its variable costs c. its fixed costs d. fixed costs minus variable costs e. fixed costs minus total revenue
The Keynesian approach to fiscal policy calls for: a. budget deficits during periods of inflationary pressure. b. budget surpluses during periods of high unemployment. c. a balanced budget despite the state of the economy
d. tax cuts during recession. e. spending increases during inflation.