Full Question:
The slope of the supply of loanable funds curve represents the
a. positive relation between the real interest rate and investment.
b. positive relation between the real interest rate and saving.
c. negative relation between the real interest rate and investment.
d. negative relation between the real interest rate and saving.
Answer:
The correct answer is C) The slope of the supply of loanable funds curve represents the <em>negative relation between the real interest rate and investment. </em>
Explanation:
Some government policies, such as investment tax credits, basically lower the cost of borrowing money at every real interest rate. Such policies make investing attractive and would increase the demand for loanable funds. Other policies, such as budget deficits, might increase the demand for loanable funds.
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The unemployment rate is not significantly affected if members of the military are excluded from the labor market because they make up one-tenth of the labor force, hence there are little to no changes in the unemployment rate indicator in economy . The proportion of the labor force that is unemployed is known as the unemployment rate.
It is a lagging indicator, which means that the instead of rising or falling in advance of shifting economic conditions, it typically does so in response to them. The unemployment rate is likely to increase when there are few jobs available and the economy is struggling.
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"The West has a higher potential for a negative externality to its free resources" reflects the content in the map.
Option D
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Explanation:
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A negative externality is a cost that is endured by an outsider as an outcome of a monetary exchange. In an exchange, the maker and customer are the first and second gatherings, and outsiders incorporate any individual, association, property proprietor, or asset that is in a roundabout way influenced.
Externalities are additionally alluded to as overflow impacts, and a negative externality is likewise alluded to as an 'outside cost'.
Externalities ordinarily emerge in circumstances where property rights over resources or assets have not been apportioned, or are unsure. For instance, nobody claims the seas and they are not the private property of anybody, so ships may dirty the ocean unafraid of being indicted.
The significance of building up property rights is fundamental to the thoughts of compelling Peruvian financial expert, Hernando De Soto, De Soto has broadly contended that effective market economies need a far reaching distribution of property rights to empower them to completely create.
Except for college book stores, all of the following are examples of oligopolistic markets.
An oligopolistic market (also known as an oligopoly) is characterized by the dominance of a small number of businesses that provide comparable products and services over a large number of others. In an oligopolistic market, there are few competitors, which limits competition and enables every firm to thrive. The environment often encourages cooperative behavior and regular business ties between companies.
It's crucial to keep in mind that oligopolistic enterprises are those that do business in oligopolistic markets. Businesses typically determine trends and pricing by establishing alliances and agreements that set prices higher than the marginal costs of the dominant firms. It implies that businesses operating in an oligopoly fix prices to maximize their own profit. In the end, it results in alliances and partnerships that help them and other businesses, particularly smaller ones engaged in the same market or sector, succeed.
If one company in a market cuts the prices it charges for goods and services to achieve the best possible increase in sales, firms that are directly competing usually do the same, frequently igniting a price war. Oligopoly firms typically avoid engaging in such pricing wars and instead invest more funds in research to enhance their products and services and in advertising that emphasizes their advantages over rival firms selling comparable goods and services.
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