When the government borrows in the market, it
A. does not have to pay interest.
B. is not required to pay back the entire principle.
C. can get indefinite extensions on the loan.
D. all of these answer options are correct.
E. none of these answer options are correct.
E. none of these answer options are correct.
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During an economic recession,
A) the demand and supply curves for loanable funds both shift to the right and the equilibrium interest rate usually rises. B) the demand and supply curves for loanable funds both shift to the left and the equilibrium interest rate usually falls. C) the demand curve for loanable funds shifts to the right, the supply curve for loanable funds shifts to the left, and the equilibrium interest rate usually falls. D) the demand curve for loanable funds shifts to the left, the supply curve for loanable funds shifts to the right, and the equilibrium interest rate usually rises.
The deadweight loss represents the sum of additional consumer and producer surplus should the firm produce the quantity where P = MC rather than where MR = MC
What will be an ideal response?