A technological breakthrough that increases the marginal productivity of capital would increase the
a. demand for loanable funds, leading to a lower equilibrium market interest rate
b. supply of loanable funds, leading to a lower equilibrium market interest rate
c. demand for loanable funds, leading to a higher equilibrium market interest rate
d. supply of loanable funds, leading to a higher equilibrium market interest rate
e. supply of loanable funds but have no impact on the equilibrium market interest rate
C
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Which of the following is NOT an example of a flow variable?
A) inventory investment B) The federal deficit C) capital stock D) planned investment
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is
A) $480 billion. B) $480.8 billion. C) $80 billion. D) $80.8 billion.