If the supply of loanable funds shifts left, then
a. the real interest rate and the equilibrium quantity of loanable funds both fall.
b. the real interest rate falls and the equilibrium quantity of loanable funds rises.
c. the real interest rate and the equilibrium quantity of loanable funds both rise.
d. the real interest rate rises and the equilibrium quantity of loanable funds falls.
d
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Because low tariffs have a high ratio of benefits to costs, they are an especially efficient way for nations to achieve full employment and growth
Indicate whether the statement is true or false
If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that
a. the future will closely resemble the past. b. consumption and disposable income will be negatively related. c. the consumption function will have a downward slope. d. as disposable income increases, consumer spending will remain constant.
A carbon tax placed on a fossil fuel:
A. is a pollution tax based on the carbon content of the fuel. B. is a form of marketable pollution permit. C. is often used in conjunction with command-and-control carbon policies. D. will not change the price of the fossil fuel taxed.
As new goods and services become available the basket of goods used to calculate the CPI:
A. immediately changes to reflect them. B. never changes to reflect them. C. doesn't change until 75 percent of urban consumers use them. D. periodically is updated in order to reflect the changes.