Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly elastic.
b. The more inelastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate.
c. Monetary policy is usually stronger in nations with inelastic real loanable funds demands.
d. Fiscal policy is usually weaker in nations with elastic real loanable funds demands.
e. All of the above are true.
.C
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For a monopoly, the demand for its product is perfectly elastic at the market price
Indicate whether the statement is true or false
An increase in the expected price level lead to
a. higher money wages and lower real wages. b. higher money wages and real wages. c. no change in money wages but lower real wages. d. lower money wages and higher real wages.