As the economy enters a strong expansion, then firms' demand for loanable funds
A) increases because the nominal interest rate rises.
B) increases because expected profit increases.
C) decreases because expected profit decreases.
D) decreases because the nominal interest rate falls.
E) increases because the real interest rate rises.
B
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When a good is imported into the United States, a ________is created
A) supply of foreign currency with no effect on the market for the dollar B) demand for dollars with no effect on markets for foreign currencies C) supply of foreign currencies and a demand for dollars D) demand for foreign currencies and a supply of dollars
Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires
A) lower; more B) higher; more C) lower; fewer D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.