Which of the following conclusions is not supported by the Three-Sector-Model?
a. A decrease in borrowing demand causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to rise.
b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds.
c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a higher GDP Price Index.
d. An increase in the value of a nation's currency encourages domestic imports and discourages exports.
e. All of the above are supported by the Three-Sector Model.
.A
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All of these could be sources of economies of scale except
a. Investment in more efficient technology b. Specialization c. A bottleneck procedure d. Discounts on bulk purchase of inputs
Economic models are most often composed of diagrams and equations
a. True b. False Indicate whether the statement is true or false