The equilibrium interest rate is determined by the
a. quantity of capital on the market
b. supply and demand for loanable funds
c. marginal revenue product of capital
d. marginal factor cost of capital
e. willingness of suppliers of capital to convert that supply into loanable funds
B
Economics
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Variance is a measure of ________ and the higher the variance, ________
A) expected profit; the greater the profit B) risk; the greater the risk C) standard deviation; greater the standard deviation D) risk; the lower the risk
Economics
When the Fed wants to lower the Federal funds rate, it:
A. Increases the discount rate B. Increases the reserve ratio C. Buys bonds from banks and the public D. Sells bonds to banks and the public
Economics