If we observe that many investors are selling Bond A and buying a similar Bond B, this suggests that the expected returns on:
A. Bond A will start falling
B. Bond B will start rising
C. Bond A was higher than that of Bond B
D. Bond A will start rising
D. Bond A will start rising
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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.
Under conditions of first-degree price discrimination
A) production will equal that which would exist under perfect competition. B) production will exceed that which would prevail under perfect competition. C) prices will be lower than under perfect competition. D) production will always be lower than under perfect competition.