Suppose the U.S. offered a tax credit for firms that built new factories in the U.S. Then
a. the demand for loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
b. the demand for loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
c. the supply of loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
d. the supply of loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
b
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The Federal Reserve was created in
A) 1893. B) 1913. C) 1921. D) 1933.
Business should take government actions as
A) given. B) something that must be recognized in decision-making. C) a passive factor with little impact. D) enhancing efficiency.
(Figure: Long-Run Aggregate Supply Curves) Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?
What will be an ideal response?