The matching function captures the idea that A) consumers have ...

[hubes95]

The matching function captures the idea that
 
  A) consumers have to be paid to work.
  B) supply and demand for labor determine the market wage.
  C) it is costly and time-consuming to get firms and workers together to produce output.
  D) firms are profit-maximizing.

Question 2

Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
 
  A) a decline in the world real interest rate.
  B) a shift to the right in the German supply of loanable funds curve.
  C) an increase in the real interest rate in the United States.
  D) a shift to the left in the German demand for loanable funds curve.

[kaillie]

Answer to Question 1

C

Answer to Question 2

C

[hubes95]

Thanks for the timely response, appreciate it

[Jossy]

Gracias!