Which of the following will lower the interest rate and increase investment spending?
a. An increase in the demand for loanable funds
b. A decrease in the demand for loanable funds
c. An increase in the supply of loanable funds
d. A decrease in the supply of loanable funds
e. An equal and simultaneous decrease in the demand for and supply of loanable funds
C
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If economies of scale are relatively important in an industry, the typical firm's
A) long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry. B) long-run average cost curve will begin rising before it reaches minimum efficient scale. C) long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales. D) marginal cost curve will decline continuously until it reaches minimum efficient scale.
Using money as a store of value rather than wheat is: a. safer
b. less expensive. c. both safer and less expensive. d. neither safer nor less expensive.