In the loanable funds market,
a. savers are suppliers of loanable funds, and borrowers are demanders of loanable funds
b. the supply curve slopes downward, and the demand curve slopes upward
c. the supply curve reflects the negative relation between the market rate of interest and the quantity of savings
d. households play the role of financial intermediaries
e. banks pay a higher interest rate on consumer savings than they could earn by lending these funds out
A
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In the above figure, CBL is the cost of breaking the law. If it is illegal to sell, but not illegal to buy, then the price per unit will be
A) $500. B) $400. C) $300. D) $200.
The change in people's purchasing power that occurs when the price of a good they purchase changes, assuming all else is held constant is known as
A) the substitution effect. B) the real income effect. C) the elasticity effect. D) the multiplier effect.