During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was steady or slightly declined. What could explain this?
A) The U.S. crowded out private saving.
B) The U.S. crowded out private borrowing.
C) The supply of loanable funds increased by a greater proportion than demand increased.
D) The supply of loanable funds increased by a smaller proportion than demand increased.
C
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Which branch of economics considers that economic agents do not always act rationally?
A) Microeconomics B) Macroeconomics C) Behavioral economics D) Econometrics
Mutually beneficial international trade between two countries depends on
a. each country having an absolute advantage in the production of a different good b. one country being worse (requiring more resources) than the other in the production of every good c. at least one country having a zero opportunity cost in the production of at least one good d. one country being relatively better at producing a good (which makes the other country relatively worse at it) e. one country being relatively better at producing all goods