What does the slope of the credit supply curve imply? When do movements along a credit supply curve occur?

What will be an ideal response?


The credit supply curve has a positive slope that implies a positive relationship between the real interest rate and the quantity of credit supplied. This means that as the real interest rate increases, the quantity of credit supplied increases.
Movements along a credit supply curve occur when there are changes in the real interest rate, everything else remaining unchanged.

Economics

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A perfectly elastic demand curve has a price elasticity of demand coefficient of:

a. zero. b. 1. c. greater than 1, but less than infinity. d. less than 1, but greater than zero. e. infinity.

Economics

Which of the following would cause the production function to shift upward?

a. A decrease in the capital stock b. A decrease in human capital c. An increase in population d. An increase in human capital e. Diminishing returns to labor

Economics

Explain why bank failures are less likely today than they were prior to the 1930s.

What will be an ideal response?

Economics

Head Start has not been "fully funded," which means

A. there wasn't enough money to pay the teachers a salary commensurate with their skill. B. it has been run mainly by volunteers. C. there were children who were eligible to be in the classes but no slots were available. D. all of the above.

Economics