In the above figure, if the real interest rate is 4 percent, then there
A) there is a surplus of loanable funds.
B) is equilibrium in the loanable funds market.
C) the real interest rate will rise.
D) the demand curve for loanable funds will shift rightward.
C
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A bridge built by the government of Ritzland collapsed in the same year it was constructed. If the total cost of building the bridge was $4 million, which of the following will happen as a result of its collapse?
A) Ritzland's GDP will decrease. B) Ritzland's GDP will remain unchanged. C) Ritzland's trade surplus will increase. D) Ritzland's trade deficit will increase.
The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200