Congress and the President implement an investment tax credit. Which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?
The demand for loanable funds shifts right. The interest rate rises.
Economics
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"More elastic" means
a. unchanging b. less desirable c. more desirable d. less responsive e. more responsive
Economics
According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation. b. lower the price level but may trigger a recession. c. reduce both unemployment and inflation. d. result in stagflation.
Economics
The United States economy ______________ operates on its production possibility curve.
A. Always B. Sometimes C. Never
Economics
The form of economic organization in which all property is held in common is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
Economics