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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The long-run supply curve for a firm in a perfectly competitive industry is:
A) negatively sloped. B) positively sloped. C) vertical. D) horizontal.
Explain what a "perfectly contestable" market means. Give an example of a perfectly contestable market. Explain why the outcome in a perfectly contestable market is that firms produce efficiently
What will be an ideal response?
If the price elasticity of supply in the kiwi fruit industry equals 1, supply is
a. perfectly elastic b. relatively elastic c. unit elastic d. relatively inelastic e. perfectly inelastic
If the CPI was 102.4 in Year 1 and was 105.7 for Year 2, then the rate of inflation between Year 1 and Year 2 was:
(a) 2.2%. (b) 3.2%. (c) 4.2%. (d) We need more information to calculate it.