Which combination of circumstances will most likely raise the rate of interest for a loan the most?
A. high risk and a long length of time for repayment
B. low handling charges and a long length of time for repayment
C. low handling charges and low risk
D. high risk and low handling charges
Answer: A
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Refer to Market Diagram. The difference between producer's surplus as a monopolist and producer's surplus when setting price at what would exist in a competitive market is
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area C + D + E - G - H.
b. Area C + D - H.
c. Area C + D + E - A - B.
d. Area E + H.
Suppose the Fed buys government securities from the public. The liquidity effect of this is that the interest rate will
A) increase. B) decrease. C) remain constant. D) any of the above are possible
An increase in productivity in the agricultural sector in conjunction with an income inelastic demand for farm products
A) causes prices to fall. B) causes prices to rise. C) causes prices to remain constant. D) may cause prices to rise, fall, or remain the same, depending upon the relative shifts in the supply and demand curves.
Which of the following is the best example of an item that a "real world" savings account is designed to cover?
What will be an ideal response?