a.

only Edgar

b.

only Diane

c.

both Edgar and Diane

d.

neither Edgar nor Diane

a.

Julie, who is on temporary layoff

b.

Andrew, who worked only 15 hours last week

c.

Ellen, who neither has a job nor is looking for one

d.

None of the above is correct.

a.

Juan, who works most of the week in a steel factory

b.

Molly, who is on temporary layoff

c.

Charlie, who does not have a job, but is looking for work

d.

All of the above are included in the labor force.

a.

decreases and the labor-force participation rate is unaffected.

b.

and the labor-force participation rate both decrease.

c.

is unaffected and the labor-force participation rate decreases.

d.

and the labor-force participation rate are both unaffected.

a.

the investment market and the saving market.

b.

the bond market and the stock market.

c.

banks and the stock market.

d.

financial markets and financial institutions.

a.

Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation.

b.

Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York.

c.

Bond A has a term of 20 years and Bond B has a term of 1 year.

d.

All of the above are correct.

a.

both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall.

b.

both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise.

c.

the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall.

d.

the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.

a.

people would want to lend more, making the supply of loanable funds increase.

b.

people would want to lend less, making the supply of loanable funds decrease.

c.

people would want to lend more, making the quantity of loanable funds supplied increase.

d.

people would want to lend less, making the quantity of loanable funds supplied decrease.

a.

There would be an increase in the amount of loanable funds borrowed.

b.

There would be a reduction in the amount of loanable funds borrowed.

c.

There would be no change in the amount of loanable funds borrowed.

d.

The change in loanable funds is uncertain.

a.

The demand for loanable funds would shift left.

b.

The supply of loanable funds would shift left.

c.

The demand for loanable funds would shift right.

d.

The supply of loanable funds would shift right.

a.

private saving and so shift the supply of loanable funds left.

b.

investment and so shift the demand for loanable funds left.

c.

public saving and so shift the supply of loanable funds left.

d.

None of the above is correct.