Suppose the government has a budget surplus of $2 billion. If there is no Ricardo-Barro effect, what occurs?
A) The demand for loanable funds curve shifts rightward, raising the interest rate, and increasing investment.
B) The supply of loanable funds curve shifts leftward, lowering the interest rate, and increasing investment.
C) The demand for loanable funds curve shifts leftward, lowering the interest rate, and decreasing investment.
D) The supply of loanable funds curve shifts leftward, raising the interest rate, and decreasing investment.
E) The supply of loanable funds curve shifts rightward, lowering the interest rate, and increasing investment.
E
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Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. If Dawn proposed $6 million while Terry proposed $9 million, Dawn will get ________ thousand votes while Terry gets ________ thousand votes.
A. 46; 44 B. 46; 74 C. 76; 44 D. The outcome cannot be predicted.
If the support price is set below the equilibrium market price,
A. A shortage will result. B. There will be upward pressure on prices. C. The equilibrium price will result. D. A surplus will result.