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Author Question: In the long-run equilibrium, an increase in the quantity of capital leads to A) an increase in ... (Read 187 times)

tsand2

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on: Jun 29, 2018
In the long-run equilibrium, an increase in the quantity of capital leads to
 
  A) an increase in the equilibrium price level and an increase in equilibrium real GDP.
  B) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
  C) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
  D) no change in the equilibrium price level, but an increase in equilibrium real GDP.

Question 2

A small country is an international borrower and its domestic demand for loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________.
 
  A) does not change; increases
  B) does not change; does not change
  C) increases; increases
  D) increases; does not change


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trog

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

B

Answer to Question 2

C


tsand2

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Reply #2 on: Jun 29, 2018
Thank you


trog

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Reply #3 on: Jun 29, 2018
No problemo


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