What is the loanable funds market?
What will be an ideal response?
The loanable funds market is the market in which households, firms, governments, banks, and other financial institutions borrow and lend. It is the aggregate of all the individual financial markets and includes loan markets, bond markets, and stock markets. The real interest rate is determined in this market.
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At one point along a PPF 40 tons of wheat are produced while 80 tons of rice are produced. At another point along the same PPF, 41 tons of wheat are produced while 70 tons of rice are produced
The opportunity cost of producing a ton of wheat between these points is ________ per ton of wheat. A) 1/2 ton of rice B) 10 tons of rice C) 1/10 ton of rice D) 4/7 ton of rice
The United States became a net debtor because
A) it ran consistently large current account deficits. B) it ran consistently large current account surpluses. C) it lent a lot to people in foreign countries. D) it provided much foreign aid to other countries.