In the loanable funds market, as the interest rate rises the ________ and the ________
A) quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases
B) quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases
C) supply of loanable funds increases; demand for loanable funds decreases
D) supply of loanable funds decreases; demand for loanable funds increases
A
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Consider two individuals, Celia and Sondra, who produce bracelets and pendants. Celia's and Sondra's hourly productivity are as follows:
Bracelets /hour Pendants /hour Celia 4 1 Sondra 10 2 Who has the absolute advantage or comparative advantage in the production of bracelets or pendants?
The quantity of labor demanded by a firm depends upon
A) the nominal wage rate not the real wage rate. B) the real wage rate not the nominal wage rate. C) both the real wage rate and the nominal wage rate. D) neither the real wage rate nor the nominal wage rate. E) either the real wage rate or the nominal wage rate, depending whether the price level is increasing or decreasing.