Question
A- Suppose that firm A is a monopsony that demands labor and XYZ Union is a monopoly that provides labor. Other things constant, the equilibrium
A- Suppose that firm A is a monopsony that demands labor and XYZ Union is a monopoly that provides labor. Other things constant, the equilibrium wage and quantity of labor will depend on what factor?
B- Other things constant, at higher interest rates, the demand for capital decreases. Provide one reason why this happens.
C- Give two reasons why a loan to a city would pay a low interest rate?
D- Suppose you receive a $20 pawnshop loan. Give two reasons why the interest rates would be high.
E- Interest rates play a vital role in the economy. What would that role be?
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