A decrease in the real interest rate leads to
A) an increase in investment demand so that the demand for loanable funds curve shifts rightward.
B) a fall in the capital stock.
C) an increase in the expected profit.
D) a movement downward along the demand for loanable funds curve.
D
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Refer to Figure 7-4. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 200. B) 500. C) 700. D) >700.
If net foreign investment in the United States is positive, how must national saving and domestic investment be related? (Assume that the capital account is zero and net transfers are zero.)
A) Domestic investment can be greater than or less than national saving. B) Domestic investment must be greater than national saving. C) Domestic investment must be less than national saving. D) Domestic investment and national saving must also be positive.
The federal income tax began in the United States with the
a. Morrill Act of 1862. b. addition of the Bill of Rights to the Constitution in 1791. c. passage of the 16th Amendment to the Constitution in 1913. d. New Deal legislation of the 1930s.
What is TRUE about government budget deficits and surpluses since 1940?
A. There have been more government budget deficits than government budget surpluses. B. Balanced budgets have been more common than government budget deficits or government budget surpluses. C. The number of government budget deficits is about the same as the number of government budget surpluses. D. There have been more government budget surpluses than government budget deficits.