Your textbook authors use the urban traffic example to show
A) why economics cannot explain non-financial processes.
B) how social cooperation emerges when people act under generally accepted rules.
C) how a smooth flow of traffic can only be achieved by detailed, central planning.
D) how a smooth flow of traffic can only be achieved if people drive in the public interest.
B
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The supply and demand for money intersect at the equilibrium real interest rate, while the supply and demand curves for loanable funds intersect at the equilibrium real interest rate
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. In the long run supply will become:
A. more elastic, rotating from S0 to S1, creating a larger shortage with a price ceiling of P2. B. less elastic, rotating from S0 to S1, creating a smaller shortage with a price ceiling of P2. C. more elastic, rotating from S0 to S1, creating a smaller shortage with a price ceiling of P2. D. less elastic, rotating from S0 to S1, creating a larger shortage with a price ceiling of P2.