If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for loanable funds, which direction does it shift, and what happens to the equilibrium interest rate?


A reduction in transfer payments reduces the government budget deficit. This decrease shifts the supply of loanable funds right which makes the interest rate fall.

Economics

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An increase in wages can cause a relatively big decrease in employment when

a. product demand is inelastic b. labor demand is elastic c. there is a closed shop d. the MRP curve is inelastic e. the MRP curve shifts to the right

Economics

According to the rational expectations theory, which of the following will affect the levels of output and employment?

a. expansionary monetary policy that is fully anticipated b. contractionary monetary policy that is fully anticipated c. changes in monetary policy that are unanticipated d. changes in fiscal policy that are anticipated

Economics

Federal antitrust laws in the United States are enforced

A) solely by the Federal Trade Commission. B) solely by the Department of Justice. C) by the Department of Justice and by the Federal Trade Commission. D) by the Department of Commerce.

Economics

In a competitive labor market, if the demand for labor increases, labor demand will shift to the:

A. right and wages will increase. B. left and wages will increase. C. right and wages will decrease. D. left and wages will decrease.

Economics