In the definition of a market, economists consider:
A. actions by third parties that do not include buyers or sellers in the market.
B. both actual and potential interactions between buyers and sellers.
C. neither actual nor potential interactions between buyers and sellers.
D. only actual interactions between buyers and sellers, not potential interactions.
B. both actual and potential interactions between buyers and sellers.
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If there is no Ricardo-Barro effect, a government budget surplus
A) increases the demand for loanable funds. B) increases the supply of loanable funds. C) decreases the supply of loanable funds. D) decreases the demand loanable funds. E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.
When consumers are less confident about their jobs or incomes, they are more likely to
A) reduce purchases of durable goods than nondurable goods. B) increase consumption spending and decrease investment spending. C) reduce purchases of nondurable goods and increase purchases of durable goods. D) increase investment spending and decrease consumption spending.