In the figure above, the rightward shift from the demand for loanable funds curve DLF1 to the demand for loanable funds curve DLF2, could be the result of
A) a decrease in expected profit.
B) a fall in the interest rate.
C) an increase in wealth.
D) a rise in the interest rate.
E) an increase in expected profit.
E
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Central bank lending to bail out troubled firms is known as ________, while allowing troubled firms to conceal the true value of their assets is called ________
A) crony capitalism; larceny B) liquidity provision; regulatory forbearance C) securitization; nonconventional monetary policy D) subprime lending; regulatory arbitrage
Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the:
a. marginal utility of the next haircut would be zero or negative. b. marginal utility of the next haircut would increase. c. marginal utility of the next haircut would be zero or positive. d. total utility of both haircuts would be zero or negative. e. total utility of both haircuts would be higher than just one haircut.