"A shortage in the loanable funds market occurs when the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded." Explain why this statement is correct or incorrect
What will be an ideal response?
The statement is incorrect because a shortage occurs when the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied.
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The U.S. Customs Service reclassified imports of compact trucks (like the Toyota Tacoma) from "cab and chassis with some final assembly needed" to "complete or unfinished trucks." As a result of this reclassification, a tariff of _____ was applied, and U.S. prices of Japanese compact trucks rose by _____.
a. 25%; 25% b. 25%; more than 25% c. 25%; less than 25% d. 4%; more than 4%
A perfectly competitive system results in an efficient allocation of resources among firms and an equal distribution of final products among households.
Answer the following statement true (T) or false (F)