Suppose Congress enacts investment tax credits to spur more business investment. What impact would this have on the loanable funds market?
a) There would be an increase in supply; the supply curve shifts right.
b) There would be a decrease in supply; the supply curve shifts left.
c) There would be an increase in demand; the demand curve shifts right.
d) There would be a decrease in demand; the demand curve shifts left.
Ans: c) There would be an increase in demand; the demand curve shifts right.
You might also like to view...
The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant:
a. the greater the change in output. b. the more sharply curved are the firm's isoquants. c. the flatter are the firm's isoquants. d. the larger the quantity of labor employed.
In the upward-sloping segment of the aggregate supply curve,
a. increases in output are linked to decreases in the price level. b. increasing prices drag down resource costs. c. producers can hire more workers without having to raise the wage rate. d. the economy can increase aggregate supply without prices going up. e. firms are willing to pay higher wages to get more labor.
Answer the following statement(s) true (T) or false (F)
1. A volume-based effluent fee is based on the degree of harm linked to the contaminant released. 2. Polluting sources have an incentive to abate up to the point where their Marginal Abatement Cost (MAC) equals the Marginal Effluent Fee (MEF), and to pay the fee beyond that point. 3. When polluting sources with different Marginal Abatement Costs (MACs) are faced with a Marginal Effluent Fee (MEF), eachabates at a different level, which means that the effluent fee does not achieve a cost-effective solution. 4. A fertilizer tax is an example of an effluent fee. 5. Tradeable effluent permit markets can lead to cost savings as long as polluting sources face different marginal abatement costs to control the same pollutant.
Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:
a) Entry tariffs. b) Entry blockades. c) Monopoly profits. d) Barriers to entry.