An increase in disposable income leads to a
A) rightward shift of the supply of loanable funds curve.
B) rightward shift of the demand for loanable funds curve.
C) downward movement along the supply of loanable funds curve.
D) leftward shift of the supply of loanable funds curve.
E) leftward shift of the demand for loanable funds curve.
A
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Stock prices start to rise
A) when investors begin to expect an economic recovery will soon begin. B) when the unemployment rate begins to decline following a recession. C) when investors are confident that the economy is more than 6 months into an economic recovery. D) when investors believe an economic recovery has already begun.
The actual government budget surplus ________ be used to determine the effectiveness of discretionary fiscal policy actions because ________
A) cannot; it excludes non-discretionary spending changes B) can; it includes non-discretionary spending changes C) cannot; it includes non-discretionary spending changes D) can; it excludes automatic stabilization expenditures
If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?
a. $8,000 b. $10,000 c. $14,000 d. $12,500 e. $18,000
Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because
a. with shortages and waiting lists, they have no incentive to maintain and improve their property. b. they become resigned to the fact that many of their apartments are going to be vacant at any given time. c. with rent control the government guarantees landlords a minimal level of profit. d. with rent control it becomes the government's responsibility to maintain rental housing.