ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 13, Problem 2.4P
To determine
The reason why in the market of loanable funds the supply curve slopes upward to the right
Concept Introduction:
In the market of loanable funds which is the market where individual wish to borrow fund or save in order to earn interest.
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The government of Rwanda eliminates taxes interest income. What happens in their market for loanable funds?Question 29 options:There would be an increase in the amount of loanable funds borrowed.There would be a reduction in the amount of loanable funds borrowed.There would be no change in the amount of loanable funds borrowed.The change in loanable funds is uncertain.
16-
Which one of these will be deducted from gross output to determine the net output?
a.
Intermediate consumption
b.
Private income
c.
Factor income from abroad
d.
Total government spending
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Harvey quit his job at State University, where he earned $58,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $8,000 a year. To start the business, he cashed in $60,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 15,000 units of software at $60 for each unit. Of the $60 per unit, $50 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
The total revenues of Harvey's firm in the first year were
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