If individuals decide to save more for retirement,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
E) an excess supply of loanable funds emerges and persists.
A
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If new firms enter a perfectly competitive industry, the market supply
A) does not change. B) becomes more price elastic. C) becomes more price inelastic. D) increases. E) decreases because each firm produces less than before the entry.
Suppose the Fed purchases $100 million of U.S. government securities from the public. How will this affect the money supply and the national debt?
a. The money supply will increase; the national debt will decline. b. The money supply will decline; the national debt will increase. c. The money supply will increase; the national debt will be unaffected. d. The money supply will decrease; the national debt will be unaffected.