When tax code changes reduce investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment
Fill in the blank(s) with correct word
demand, left, decrease, decrease
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All of the following are factors that will shift the supply curve except
A) a change in production technology. B) changing tastes and preferences. C) a change in the price of substitutes in production. D) a change in the number of producers.
If a 10 percent increase in price causes a 5 percent increase in quantity supplied, then supply is
A) elastic. B) inelastic. C) unit elastic. D) infinite.
Government spending that shifts income from one group of society to another, such as price subsidies and cash payments, is known as
a. merit goods spending b. debt servicing c. transfer payments d. countercyclical payments e. social spending
A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it
a. True b. False Indicate whether the statement is true or false