In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy.
B) a surplus of loanable funds.
C) a shortage of loanable funds.
D) a shortage in available funds for investment.
B
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The problems of raising the level of the inflation target include
A) if the zero-lower-bound problem is rare, then the benefits of a higher inflation target are not very large. B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above.
Fixed costs are best defined as
a. costs that do not vary with output. b. costs that are at a minimum when output approaches the firm's capacity. c. the amount that one more unit of output adds to total costs. d. costs that decline as output increases.
Which of the following industries have been deregulated in recent year?
a) low-cost housing b) pharmaceuticals c) airlines d) steel
Ceteris paribus, or "all other things held constant," is an assumption that has what effect on a demand schedule?
a. It takes only prices into account. b. It considers the effects of all possible changes on demand. c. It is accurate no matter what changes occur. d. It is accurate only at one price level.