Economists also refer to the normal rate of return on investment as
A) a residual cost.
B) the opportunity cost of capital.
C) the equity kicker.
D) the fixed cost of entrepreneurship.
Answer: B
Economics
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In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit rises, the amount of loanable funds demanded will be
A) less than $450 billion. B) $450 billion. C) between $300 billion and $450 billion. D) greater than $450 billion.
Economics
Which of the following situations is likely to lead to dynamic open market operations?
A) A recession B) An increase in Federal Reserve float C) An increase in Treasury cash holdings D) An increase in currency outstanding
Economics