The demand for bonds is
A) equivalent to the demand for loanable funds.
B) equivalent to the supply of loanable funds.
C) represented by an upward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.
D) represented by a downward-sloping line when the interest rate is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.
B
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What is the main problem with mild inflation, according to some economists?
A. It increases frictional and structural unemployment in the economy. B. It reduces the size of the GDP gap. C. It diverts productive time towards activities to hedge against inflation. D. It leads to unanticipated deflation.
The main source of diseconomies of scale is
A. specialization of labor. B. limits to the efficient functioning of management. C. dimensional factors associated with many physical relationships. D. improvements in production technology.