In centrally planned economies, most prices are not
a. established by central planners
b. inflexible
c. set below the market-clearing level
d. based on consumer demand
e. the cause of shortages of supply
D
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If the supply of loanable funds increases, what is the result for the equilibrium of the loanable funds market?
A) A surplus of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. B) A surplus of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds. C) A shortage of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. D) A shortage of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. None of the above is correct.