Based on the graph showing the effects of a government budget deficit, a budget deficit would ______.
a. increase the demand curve for loanable funds
b. decrease the demand curve for loanable funds
c. increase the supply curve for loanable funds
d. decrease the supply curve for loanable funds
d. decrease the supply curve for loanable funds
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Any country with highly attractive domestic investment opportunities and a low savings rate will tend to
a. run a current account deficit that is equal to its capital account surplus. b. run a current account surplus deficit over a long period. c. tend to be relatively poor (compared with other countries). d. run a current account deficit.
In order to move the federal funds rate to the level it desires, the Fed must
A) first change the discount rate to the desired federal funds rate. B) specify the interest rate on previously issued government bonds. C) adjust the money supply to achieve the target federal funds rate. D) limit the amount of bank lending activity.
An oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:
A. increase total revenue by increasing price but lower total revenue by decreasing price. B. decrease total revenue by either increasing or decreasing price. C. increase total revenue by either increasing or decreasing price. D. increase total revenue by decreasing price but lower total revenue by increasing price.
With a human capital investment (such as the investment in going to college), the most important cost tends to be
A. the opportunity cost of not working. B. taxes. C. books and equipment. D. foregone leisure.