Congress and the President allow people to make greater contributions to tax-deferred savings accounts. Which curve in the market for loanable funds would shift, which direction would it shift, what would happen to the interest rate, and what would happen to investment spending?
The supply of loanable funds would shift right. The interest rate would fall, so investment would rise.
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You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back
What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game? A) the entire cost of the movie rental, since you have already watched the movie B) one half the rental cost, because you have already watched the movie one time C) The answer depends on how much you liked the movie in the first place. D) the football game you forego by watching the movie again
Refer to Figure 3.4. The odds of Serena and Austin meeting randomly to view the sunset are
A) 0%. B) 25%. C) 50%. D) 100%.
When Mexico suffered from capital flight in 1994, Mexico's net capital outflow
a. and net exports decreased. b. and net exports increased. c. increased while net exports decreased. d. decreased while net exports increased.
Fiscal policy and monetary policy are economic stabilization policies designed to
A. prolong recessions. B. prolong inflation. C. stabilize prices. D. decrease employment.