If households believe their incomes will fall in the future, the result is a
A) rightward shift in the supply of loanable funds curve.
B) leftward shift in the supply of loanable funds curve.
C) movement along the supply of loanable funds curve.
D) movement along the demand for loanable funds curve.
A
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If total profit is maximized, then marginal cost must equal marginal revenue.
Answer the following statement true (T) or false (F)
If the reserve requirement decreases from 20% to 25% and the currency to deposit ratio increases from 10% to 15% then
a. the money multiplier and the money supply rises. b. the money multiplier and the money supply stays the same. c. the money multiplier and the money supply falls. d. the money multiplier rose and the money supply falls.
The health savings account (HSA):
a. is also called a health reimbursement arrangement (HRA). b. is funded with after-tax dollars. c. allows its owner to ignore high medical care prices. d. is often used in conjunction with a high-deductible health plan (HDHP). e. can be used to cover non-medical spending without penalty.
The slope of the consumption function equals the marginal propensity to consume.
a. true b. false