If the supply of and demand for loanable funds both shift left, which of the following necessarily happens?
a. the equilibrium interest rate falls
b. the equilibrium interest rate rises
c. the equilibrium quantity of loanable funds rises
d. the equilibrium quantity of loanable funds falls
d
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In the next three years, the federal tax system could be replaced with a national retail sales tax.
A. True B. False C. Uncertain
Intra-industry trade is most common in the trade patterns of
A) the industrial countries of Western Europe. B) the developing countries of Asia and Africa. C) raw material producers. D) China with the rest of the world. E) labor-intensive products.
Which of the following statements best reflects a price-taking firm?
a. If the firm were to charge more than the going price, it would sell none of its goods. b. The firm has an incentive to charge less than the market price to earn higher revenue. c. The firm can sell only a limited amount of output at the market price before the market price will fall. d. Price-taking firms maximize profits by charging a price above marginal cost.
If, regardless of price, the quantity supplied is a constant amount, then the supply curve is:
A. horizontal. B. vertical. C. upward sloping. D. downward sloping.