In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if disposable income decreases?
A) Nothing; the economy would remain at point a.
B) There would be a movement to a point such as b on supply of loanable funds curve SLF0.
C) The supply of loanable funds curve would shift rightward to a curve such as SLF2.
D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.
D
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Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?
A. Crowding out and public sector output would decrease. B. Crowding out and public sector output would increase. C. Crowding in and private sector output would increase. D. Crowding in and private sector output would decrease.
Use the following graph to answer the next question.
Which of the following changes will shift AD1 to AD2?
A. A shrinkage in the value of stocks and other financial assets B. An increase in the value of the dollar relative to other currencies C. An increase in real interest rates D. A decrease in personal and business taxes
A difference between economic regulation and social regulation is that
A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.
The sum of the revenue collected by the tax and the excess burden created by the tax is the
A. gross revenue. B. tax incidence. C. deadweight loss. D. total tax burden.