Refer to the diagram, in which C 1 is the before-tax consumption schedule. The consumption schedule represented by C 3 reflects:
A. a progressive tax system.
B. a proportional tax system.
C. a regressive tax system.
D. a higher MPC than is embodied in C 1 .
B. a proportional tax system.
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For a government to add to the supply of loanable funds, it must
A) borrow. B) increase its investment demand. C) have a budget deficit. D) raise the real interest rate. E) have a budget surplus.
During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise
Because of the recognition internationally of the principles of national sovereignty, nations cannot be affected by the policies of other nations and international governmental organizations
Indicate whether the statement is true or false
What would happen to the availability of credit if banks chose to either increase or decrease the percentage of deposits they hold as reserves?
What will be an ideal response?