The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The loanable funds market is in equilibrium when the real interest rate is
A) 7 percent B) 4 percent. C) 3 percent D) 6 percent. E) 5 percent.
B
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Less money supply
What will be an ideal response?
Empirical studies suggest that, other things equal, the smaller the number of hospitals in a city, the lower are nurses' wages. This is evidence that:
A. the labor markets of nurses are purely competitive. B. hospitals may possess some degree of monopsony power. C. the minimum wage does not apply to nurses. D. labor unions have been ineffective in increasing the wages of nurses.
On a downward-sloping linear demand curve, demand becomes more inelastic as price decreases.
Answer the following statement true (T) or false (F)
The following diagram shows a market in equilibrium. If there was a $1.50 price ceiling, 
A. there would be a surplus of 30 units. B. there would be a shortage of 30 units. C. the quantity demanded would be 80 units. D. the quantity demanded would be 65 units.