If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in the expected rate of inflation?
a. The real risk-free interest rate rises and the quantity per time period falls.
b. The real risk-free interest rate rises and the quantity per time period rises.
c. The real risk-free interest rate does not change and the quantity per time period does not change.
d. The real risk-free interest rate rises and the quantity per time period is uncertain.
e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.
.C
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The supply and demand schedules for dozens of roses are given below: Price__ Quantity S per period__ Quantity D per period $10________ 200_______________ 500 $20________ 300_______________ 450 $30________ 400_______________ 400 $40________ 500_______________ 350 $50________ 600_______________ 300 The equilibrium price for a dozen roses is
A) $30. B) $50. C) $20. D) $10. E) $40.
Suppose that your roommate is very untidy. Suppose she/he gets a $100 benefit from being messy but imposes a $200 cost on you. (Assume that there are no regulations against untidiness in your living quarters.) The Coase Theorem would suggest that an efficient solution can be reached where: a. you pay your roommate at least $100 but no more than $200 to clean up after her/himself b. you pay your
roommate at least $201 to clean up after her/himself. c. you continue to live with your untidy roommate until you are able to make other living arrangements elsewhere. d. your roommate pays you at least $100 to have you clean up after her/him.