In the Supply and Demand of Loanable Funds model presented in Chapter 3, the variable that adjusts to equilibrate the supply and demand for goods and services is:

A. government spending.
B. consumption.
C. taxes.
D. the real interest rate.

Ans: D. the real interest rate.

Economics

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It has been noted that a country that grants a considerable amount of economic freedom will experience

A) positive rates of per capita income growth. B) low levels of political freedom. C) dead capital. D) negative rates of per capita income growth.

Economics

Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers

A) changes neither the composition of the compensation that firms pay nor its level. B) changes both the composition of the compensation that firms pay and its level. C) changes the composition of the compensation that firms pay, but does not change its level. D) does not change the composition of the compensation that firms pay, but does change its level.

Economics