Which of the following would cause the demand for loanable funds to increase?
a) A reduction in consumer confidence that causes people to save more.
b) A new investment tax credit for businesses to expand.
c) A major sporting event in town that causes people to withdrawl money from their bank accounts.
d) A reduction in government spending.
Ans: b) A new investment tax credit for businesses to expand.
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Explain the big tradeoff. What idea of fairness has been developed to deal with it?
What will be an ideal response?
If Big Fitness, a large workout facility, offers a discounted membership to college students, this is an example of ________.
A) zero-degree price discrimination B) first-degree price discrimination C) second-degree price discrimination D) third-degree price discrimination
Welfare data show that in the United States
a. most welfare recipients receive benefits only for a short time b. welfare encourages young women to have children c. children brought up on welfare tend to remain on welfare as adults d. having poor parents does not increase the chances of a child's being on welfare as an adult e. children of poor parents have a 50 percent chance of being middle-income adults
A permanent marginal tax rate cut would be expected to shift both the short-run and the long-run aggregate supply curves to the right
Indicate whether the statement is true or false