A technological breakthrough that increases the marginal productivity of capital would increase the
a. demand for loanable funds, leading to a lower equilibrium market interest rate
b. supply of loanable funds, leading to a lower equilibrium market interest rate
c. demand for loanable funds, leading to a higher equilibrium market interest rate
d. supply of loanable funds, leading to a higher equilibrium market interest rate
e. supply of loanable funds but have no impact on the equilibrium market interest rate
C
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Over time, a country's real GDP per capita typically
A) shrinks B) grows. C) increases and decreases randomly. D) remains stable.
Tariffs and quotas create a loss in social welfare because
A) producer surplus declines. B) revenues from tariffs are misspent. C) consumer surplus declines. D) All of the above.
Use the security market line model to explain why stock prices did not rise when the Federal Reserve lowered the risk-free interest rate during the Great Recession of 2007–2009.
What will be an ideal response?
The concept of "wages" includes the following items, except:
A. Direct money payments like salaries and commissions B. Bonuses and royalties C. Amounts spent by workers D. Fringe benefits like health insurance and paid leave