Consider the market for credit. When the demand for credit decreases while the supply of credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase.
B) the interest rate will increase and the amount of credit provided in the market will increase.
C) the interest rate will decrease and the amount of credit provided in the market will decrease.
D) the interest rate will increase and the amount of credit provided in the market will decrease.
C
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A straight-line demand curve along which the price elasticity of demand equals 0 is one that
A) forms a 45 degree angle with the vertical axis. B) forms a 60 degree angle with the horizontal axis. C) is vertical. D) is horizontal.
The Herfindahl-Hirschman Index is used to measure
A) brand recognition. B) the ease of market entry. C) market power. D) none of these choices.
When the government is the sole depository of foreign currencies and exercises complete control over how these currencies may be used, this
a. is a violation of International Monetary Fund regulations for member countries because it denies the right of market forces to determine exchange rates b. creates equilibrium in the foreign exchange market which would otherwise not occur c. is an example of exchange controls that allow a government to maintain a fixed exchange rate d. is necessary in a floating exchange rate system to keep the market in equilibrium e. stimulates international trade because it eliminates all the uncertainty associated with floating exchange rates
If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:
A. 1. B. 9. C. 10. D. 90.