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Author Question: Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. ... (Read 121 times)

nenivikky

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on: Jun 29, 2018
Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above.
 
  As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.
  A) supply; rise; decreasing; increasing B) demand; fall; decreasing; decreasing
  C) demand; rise; increasing; decreasing D) supply; fall; increasing; decreasing

Question 2

What is a zero-sum game? Can you think of any zero-sum games in real life?
 
  What will be an ideal response?


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nathang24

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A zero-sum game is one in which one player's loss is another's gain, so the sum of the payoffs of both the players is zero. Zero-sum games occur when two or more firms are competing for consumers. For example, when you buy a Toyota Prius, Toyota's gain is another car manufacturer's loss. Poker is a zero-sum game; my winnings are your losses.


nenivikky

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

chereeb

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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