Refer to Figure 26-5. Starting at point A, a change in tax laws that encouraged households to save more would likely cause
a. the quantity of loanable funds traded to increase to $125 and the interest rate fall to 5% (point D).
b. the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% (point C).
c. the quantity of loanable funds traded to decrease to $75 and the interest rate to fall to 5% (point B).
d. the quantity of loanable funds traded to decrease to $75 and the interest rate to rise to 7% (point E).
Answer: a. the quantity of loanable funds traded to increase to $125 and the interest rate fall to 5% (point D).
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The most accurate procedure for finding out whether it is more efficient for a commercial airline to use 727s or 757s for its domestic flights is to
A) compare the fuel efficiency of 727s and 757s. B) compare the fuel efficiency and operating cost of 727s and 757s. C) compare the acquisition cost, operating cost, and fuel efficiency of 727s and 757s. D) compare the acquisition cost, operating cost, and fuel efficiency per passenger seat of 727s and 757s. E) see whether the airline has chosen to use 727s or 757s.
In the above figure, point ________ shows an equal distribution of income, while point ________ shows an unequal distribution of income
A) a, b B) b, c C) b, a D) a, d
An economy of 25 million people has twenty percent of them engaged in research and development, where their productivity is 0.0056. The economy is on a balanced growth path, when suddenly a wave of immigration raises the population to 27 million
Assume that the new workers are immediately "on the job," and that the fraction engaged in R&D remains twenty percent. For the one period that begins with this population increase, the growth rate of output per person is ________. [Refer to the instruction above.] A) 4.3% B) 1.8% C) 3% D) 8%
Prohibiting price increases in situations of true scarcity
a. prevents the market mechanism from reallocating resources more efficiently. b. discourages production. c. may lead to extreme shortages of vitally needed products. d. All of the above are correct.