The demand for loanable funds has a ________ slope because the lower the interest rate, the ________ number of investment projects are profitable, and the ________ the quantity of loanable funds demanded
A) negative; greater; greater
B) negative; greater; lesser
C) negative; lesser; greater
D) positive; lesser; lesser
Answer: A
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The consumption function relates consumption spending to _____
a. the price level b. interest rates c. disposable income d. expectations about the price level e. household wealth
An example of a tax-funded program primarily intended to stimulate economic growth is the:
A. maintenance of public highways. B. provision of housing to those in need. C. provision of basic healthcare. D. provision of national defense.
Which of the following statements is true concerning comparative advantage?
A. Rich nations typically have a comparative advantage in the production of all goods. B. Poor nations typically have a comparative advantage in the production of all goods. C. Poor nations typically have a comparative advantage in high-tech but not agricultural goods. D. Poor nations typically have a comparative advantage in agricultural but not high-tech goods.
The specificfactors model assumes that in each industry (such as manufacturing and agriculture) there are factors of production that are:
a. less productive. b. outsourced to other nations. c. fixed or immobile. d. very scarce and therefore have a high supply price.