If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

Tara buys four music cassettes when the price is $10 and two cassettes when the price is $14 . Her price elasticity of demand is:

a. 0. b. 1. c. 2. d. 3. e. 4.

When compared to monopoly and monopolistic competition, the perfectly competitive market structure

a. has somewhat higher barriers to entry b. produces the lowest output at the lowest prices c. is the least efficient d. gives the greatest output at the lowest prices e. earns the highest normal profit