Refer to the market for loanable funds, as shown in the above graph. Suppose investors who borrow money in the loanable funds market become quite nervous and pessimistic about the economy in general, and expected returns on investments in particular. We would expect to see a(n):
A. Lower equilibrium interest rate
B. Rightward shift of the supply curve
C. Rightward shift of the demand curve
D. Increase in the equilibrium quantity of loanable funds
A. Lower equilibrium interest rate
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The estimated value of the U.S. government's unfunded liability to Social Security is:
A. $4.6 trillion. B. $4.8 trillion. C. $15.6 trillion. D. $20.5 trillion.
If a purely competitive firm is producing where price exceeds marginal cost, then:
A. the firm will fail to maximize profit, but resources will be efficiently allocated. B. the firm will fail to maximize profit and resources will be overallocated to the product. C. the firm will fail to maximize profit and resources will be underallocated to the product. D. resources will be underallocated to the product, but the firm will maximize profit.