What effect would we expect in the market for loanable funds if people increase their saving?
A. Supply will shift right and demand will not change.
B. Demand will shift left and supply will not change.
C. Supply will shift left and demand will not change.
D. Demand will shift right and supply will not change.
Answer: A
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The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA) will
A) increase federal government spending by about $2 trillion over 10 years. B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. C) actually reduce government spending over a 20 year period. D) eliminate the budget deficit within 10 years.
U.S. government regulation of social and economic activity
A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law.
In Graph C, if P1 moved to P2 which of the following would most likely happen?
a. The price of leather would decrease.
b. The price of leather would decrease, but the quantity of leather would increase.
c. The price of leather would increase, but the quantity of leather would decrease.
d. The quantity of leather would increase.
Which of the following will shift the consumption function upward?
A. an increase in consumer wealth B. an increase in disposable income C. an increase in personal income taxes D. a decrease in the MPC