Suppose many businesses want to increase their stock of capital goods and decide to borrow funds to do it. Which would be the likely result of this event?
A. Interest rates would increase
B. Interest rates would decrease
C. The equilibrium quantity of loanable funds would decrease
D. The equilibrium quantity of loanable funds would remain unchanged
A. Interest rates would increase
You might also like to view...
Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the money wage rate. D) increases only if the price level also decreases.
An increase in the saving rate will affect which of the following variables in the long run?
A) output per worker B) capital per worker C) the level of investment D) all of the above
Purchasing power parity is used to estimate:
A. changes in price levels, not exchange rates. B. changes in both short-run and long-run exchange rates. C. only changes in short-run exchange rates. D. only changes in long-run exchange rates.
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. After a specified amount of time, the player can become a free agent. This implies that, everything else equal,
A) the player's salary is probably higher as a free agent than as a reserve player. B) the player's salary is probably lower as a free agent than as a reserve player. C) the player's salary is probably the same as a free agent and as a reserve player. D) the free agent status is not granted to every player.