During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange right.
b. shift the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left.
c. shift the demand for loanable funds left and shift the supply of dollars in the market for foreign-currency exchange right.
d. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange left.
b
You might also like to view...
The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes
If U.S. citizens decide to purchase more foreign assets at each interest rate, the U.S. real interest rate
a. increases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases. b. increases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases. c. decreases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow decreases. d. decreases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow increases.
Multinationals typically operate in a market structure that would best be described as
A. inherently disadvantaged. B. perfect competition. C. monopoly. D. an oligopoly.