If a country went from a government budget deficit to a surplus, national saving would
a. increase, shifting the supply of loanable funds right.
b. increase, shifting the supply of loanable funds left.
c. decrease, shifting the demand for loanable funds right.
d. decrease, shifting the demand for loanable funds left.
a
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If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:
A. substitutes. B. complements. C. inferior. D. elastically demanded.
If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities, then
A) welfare is greater under monopoly. B) welfare is greater under competition. C) welfare is the same for both market structures. D) the social optimum must be zero.
In the ordered pair (20, 30), 20 is the
a. the x-coordinate. b. the horizontal location of the point. c. the y-coordinate. d. Both a and b are correct.
Refer to the diagrams. At the profit-maximizing level of employment for this firm, the amount available to pay to nonlabor resources:
A. is 0abc.
B. is 0Wbc.
C. is Wab.
D. cannot be determined.