In the classical model, the demand for loanable funds comes from
a. consumption expenditures and the government deficit, if any
b. net taxes and government expenditures
c. government purchases
d. investment spending and the government deficit, if any
e. consumption expenditures, investment spending and government purchases
D
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The reason why public subsidization of industries in less-developed countries causes slow economic growth is that:
a. when companies face no competition, there is no incentive for them to improve their production. b. too much of the taxpayer's money is spent in these programs. c. consumers tend to develop an aversion for the purchase of subsidized goods and services. d. subsidies tend to create too much competition for products. e. subsidization creates shortage in the product market.
A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality
a. True b. False Indicate whether the statement is true or false
The graph shown exhibits constant returns to scale:
A. in region a. B. in region c. C. in regions a, b, and c. D. in region b.
A firm is experiencing ________ on the upward-sloping portion of a firm's long run average cost curve.
A. diminishing marginal returns B. decreasing returns to scale C. increasing returns to scale D. constant returns to scale