What does the slope of the credit supply curve imply? When do movements along a credit supply curve occur?
What will be an ideal response?
The credit supply curve has a positive slope that implies a positive relationship between the real interest rate and the quantity of credit supplied. This means that as the real interest rate increases, the quantity of credit supplied increases.
Movements along a credit supply curve occur when there are changes in the real interest rate, everything else remaining unchanged.
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If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
a. the Folk Theorem b. the law of large numbers c. the Prisoner's dilemma d. the paradox of large numbers e. the strategy of recusal
Which of the following is another way of saying "marginal benefits of an action"?
A. Benefits given up, once the action is taken B. Unintended gains from taking the action C. Benefits accruing to others, as a result of one's action D. Extra benefits resulting from the action