If Canada goes from a large budget deficit to a small budget deficit, it will
a. increase private saving and so shift the supply of loanable funds right.
b. increase investment and so shift the demand for loanable funds right.
c. increase public saving and so shift the supply of loanable funds right.
d. reduce national saving and shift the supply left.
c
You might also like to view...
The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,
a. d and e. b. the supply curve of labor is relatively flat. c. offering a wage lower than the market wage means having no workers. d. the employer faces the market supply curve. e. the firm does not take the wage as given.
The measure of how easily a particular asset can be converted quickly to cash without much loss of value is called:
A. liquidity. B. risk. C. intermediation. D. default line.
In 2013, federal government spending made up approximately __________ percent of GDP in the United States
A) 14 B) 23 C) 34 D) 44 E) 54
In 1979, the Federal Reserve decided to tighten monetary policy in order to reduce inflation, which had risen to double-digit levels. The AD/AS model framework suggests that the short-run effect of this policy was to reduce:
A. neither inflation nor output. B. inflation primarily with little change in output. C. output primarily with little change in inflation. D. both inflation and output.