The supply curve of loanable funds is upsloping because:
A. businesses find more investments to be profitable at low interest rates than at high interest
rates.
B. government budget deficits vary inversely with the equilibrium interest rate.
C. households are willing to save more at high interest rates than they are at low interest
rates.
D. banks lend more at low interest rates than they do at high interest rates.
Answer: C
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When demand is unit elastic, an increase in price will cause total revenue to increase, stay the same, or decrease, depending on the corresponding change in quantity demanded
Indicate whether the statement is true or false
When a U.S. importer needs $22,000 to settle an invoice for 25,520 Swiss francs, the exchange rate must be:
a. 1 Swiss franc = $1.16. b. 1 Swiss franc = $0.16. c. 1 Swiss franc = $0.84. d. $1 = 1.16 Swiss franc. e. $1 = 1.84 Swiss franc.