At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.
B) the real interest rate is above the equilibrium level.
C) the real interest rate is below the equilibrium level.
D) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
E) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
B
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Nick consumes two goods, chips and lemonade. Located on the x-axis is the quantity of chips and on the y-axis is the quantity of lemonade. The magnitude of the slope of the budget line equals the
A) price of lemonade. B) price of chips. C) price of chips/price of lemonade. D) price of lemonade/price of chips.
According to purchasing power parity, which of the following is FALSE about an overvalued dollar compared to the Japanese yen?
A) U.S. merchants would be motivated to import more Japanese goods. B) Japanese merchants would tend to export more to the United States. C) Prices in the United States would tend to fall. D) Over the long term, the exchange rate would fall.