What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. The supply of loanable funds would shift rightward and investment would increase.
b. The supply of loanable funds would shift leftward and investment would decrease.
c. The demand for loanable funds would shift rightward and investment would increase.
d. The demand for loanable funds would shift leftward and investment would decrease.
a
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Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount
a. True b. False Indicate whether the statement is true or false
If the nominal interest rate is 7 percent and the real interest rate is 2 percent, then what is the inflation rate?
a. 9.0 percent b. 5 percent c. 3.5 percent d. None of the above is correct.
List one specific policy that would shift the long-run Phillips curve to the right
Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 3%. The future value of the $500 in 5 years to the nearest cent is
a. $575.00 b. $578.81 c. $579.64 d. None of the above is correct.