If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds, and ________
A) shortage; savers increase their saving supply to restore the equilibrium
B) shortage; borrowers have an easy time finding the funds they want
C) surplus; some borrowers cannot find the funds they want
D) shortage; some borrowers cannot find the funds they want
E) surplus; borrowers have an easy time finding the funds they want
D
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The efficiency of competitive markets happens because
A) of the benevolence of the butcher, the brewer, and the baker. B) people make environmentally aware purchasing decisions. C) prices adjust to make buying plans and selling plans compatible. D) government organizes and monitors production. E) the U.S. economy uses a command system to allocate resources within the competitive markets.
In their relationship with stockholders, a firm's managers act
A) as agents. B) as principals. C) in loco parentis. D) as proprietors.