In the loanable funds market, if the interest rate is above the equilibrium level
A) there is a shortage of loanable funds.
B) there is a surplus of loanable funds.
C) expected profit falls.
D) government expenditure decreases.
B
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Suppose a study finds most pot-smokers drank milk as young children
If we reach the conclusion that because most pot smokers "started" on milk, milk drinking "leads" to pot-smoking (at least among certain susceptible groups of milk users), we are most likely A) engaging in correct analysis. B) confusing statistical correlation with causation. C) following the axioms of selfish interests. D) assuming people really do not know what is in their own interests.
Nicholas is saving money collected from his paper route in order to purchase a new bicycle. His saving represents using money as
A) a medium of exchange. B) a store of value. C) an unit of account. D) none of the above