Author Question: The demand for loanable funds slopes A) downward because NPV falls as interest rates fall. B) ... (Read 68 times)

Lisaclaire · **on:** Jul 1, 2018

The demand for loanable funds slopes

A) downward because NPV falls as interest rates fall.
B) downward because NPV falls as interest rates rise.
C) downward because NPV falls as money enters the economy.
D) upward because at higher interest rates people are more willing to save.
E) upward because at higher interest rates the stock market is a less attractive investment.

Question 2

For a monopsony buyer, the marginal expenditure per unit of an input

A) exceeds the average expenditure per unit.
B) is less than the average expenditure per unit.
C) equals the average expenditure per unit.
D) any of the above could be true.