A decrease in the government's budget deficit will
a. increase the supply of loanable funds, lower the interest rate, and increase investment spending
b. reduce the supply of loanable funds, raise the interest rate, and reduce investment
c. increase the demand for loanable funds, raise the interest rate, and reduce investment spending
d. reduce the demand for loanable funds, lower the interest rate, and increase investment spending
e. increase the supply of loanable funds, reduce the demand for loanable funds, leave the interest rate unchanged, and increase investment spending
D
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The food processing industry in Richland accounts for 20% of its GDP
Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remains unchanged. A) Richland's unemployment rate will fall. B) Richland's interest rate will increase. C) Richland's inflation rate will increase. D) Richland's GDP will fall.
The Social Security program is unique in that employees can _____ the amount shown on their W-2 form and find out _____
a. look at; their share of the cost of Social Security b. double; their annual contributions to their retirement c. look at; their annual contributions to their retirement d. double; their share of the cost of Social Security
The value marginal product of a resource is
a. the marginal product of the resource multiplied by the price of the product it helps to produce. b. the price of the product times the price of the resource. c. larger when the product price is smaller. d. larger when the marginal product is smaller.
In Country B, the government simultaneously decreases its expenditures by $25 billion and decreases taxes by $25 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________.
A. has no effect on; $0 B. increases; $125 billion C. decreases; $125 billion D. decreases; $25 billion