The supply curve for funds
a. |
is generally positively sloped. |
|
b. |
depends upon people's savings plans. |
|
c. |
is a function of the interest rate. |
|
d. |
All of the above are correct. |
Answer
Option d
A supply curve of funds depicts a positive relationship between the interest rate and quantity of funds supplied and that depends on the savings.
It shows an increase in interest rate increases the number of funds supplied.
The supply curve for funds a. is generally positively sloped. b. depends upon people's savings plans....
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The individual supply curve is positively sloped because a higher price A. ensures that a firm will make more profit by purchasing more materials and hiring more workers O B. will discourage consumers from buying so more will be supplied O C. encourages a firm to increase its output by purchasing more materials and hiring more workers O D. will not last long so that the firm has to increase production while it can.
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Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. Investment increases by $10 billion. In the short run, equilibrium real GDP a. does not change. o b. decreases by less than $20 billion. oc increases by $20 billion. increases by less than $20 billion. O e. increases by more than $20 billion. od.
If the elasticity of supply of a good is ∞, then its A. supply curve is horizontal. B. demand curve must be vertical. C. supply curve is vertical. D. supply curve is positively sloped.
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Consumption depends _______ on disposable income, and Investment depends _______ on the real interest rate a) Positively, positively b) Positively, negatively c) Negatively; negatively d) Negatively, positively
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