Explain how a government can cause the demand for loanable funds curve to rise and to fall and provide an example.
What will be an ideal response?
Student answers will vary. A sample answer follows. One way that a government can cause the demand for loanable funds curve to rise is by giving businesses a tax credit for capital investments. This would encourage businesses to invest more, which in turn would boost demand for loanable funds. If the government ended the tax credit a few years later, demand for loanable funds would fall as a result.
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Before the Industrial Revolution, living standards in the world
A. were relatively stagnant for long periods of time. B. were declining because of rapid increases in population. C. were already rising significantly for many decades. D. are not known, for lack of reliable records from that period.
Monique buys a new television for $795. She receives consumer surplus of $355 from the purchase. How much does Monique value her television?
A) $355 B) $440 C) $795 D) $1150
Refer to Figure 2-11. Which country has a comparative advantage in the production of cotton?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country
________ account(s) for between 1 and 4 percent of health care costs in the United States
A) The aging population B) The payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance C) Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices D) Advances in medical technology