Author Question: The demand for loanable funds curve is A) downward sloping when plotted against the real interest ... (Read 74 times)

melly21297 · **on:** Jun 29, 2018

The demand for loanable funds curve is

A) downward sloping when plotted against the real interest rate.
B) vertical at the full employment level of investment.
C) constant at the maximum expected profit rate.
D) upward sloping when plotted against the real interest rate.

Question 2

Because the productivity of labor decreases as the quantity of labor employed increases

A) the quantity of labor a firm demands increases as the real wage rate decreases.
B) the quantity of labor a firm demands increases as the money wage rate decreases.
C) the labor demand curve shifts right as the real wage rate decreases.
D) the aggregate production function shifts upward as the real wage rate decreases.