When many residents own automobiles that can handicap urban transportation services
Indicate whether the statement is true or false
T Private individuals who own automobiles can travel at marginal cost, whereas if it has no government support an urban transit system must charge customers its average cost, which is likely to be higher than auto owners' marginal costs.
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The quantity of loanable funds supplied increases if the real interest rate rises, all other things remaining the same, because the
A) real interest rate is the opportunity cost of saving. B) real interest rate is inversely related to the cost of buying on credit. C) real interest rate is the opportunity cost of consumption. D) cost of living is determined by the real interest rate. E) demand for investment increases when the real interest rate rises.
What is arbitrage? Explain why arbitrage drives the contract price of futures to the price of the underlying asset on the expiration date, for prices above and below the asset price
What will be an ideal response?