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Author Question: Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the ... (Read 68 times)

Alainaaa8

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on: Jun 29, 2018
Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the expected profit increases. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________.
 
  A) leftward; rises
  B) rightward; rises
  C) rightward; does not change
  D) leftward; falls
  E) rightward; falls

Question 2

According to Okun's Law, if the unemployment rate is 7 percent and the natural unemployment rate is 5 percent, potential GDP is ________ than real GDP.
 
  A) 2 percent greater
  B) 7 percent less
  C) 2 percent less
  D) 4 percent less
  E) 4 percent greater


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pikon

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

B

Answer to Question 2

D


Alainaaa8

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Reply 2 on: Jun 29, 2018
Gracias!

shewald78

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Reply 3 on: Yesterday
:D TYSM

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