If Congress instituted an investment tax credit, the interest rate would
a. rise and saving would rise.
b. fall and saving would fall.
c. rise and saving would fall.
d. fall and saving would rise.
a
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A fall in the government's budget deficit will lower
A) equilibrium GDP and consumption. B) consumption and saving. C) saving and GDP. D) All of the above are correct.
Assume there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in
A) an increase in the U.S. dollar exchange rate for Australian dollars. B) an appreciation of the U.S. dollar. C) a movement along the demand curve for Australian wine. D) a decrease in the par value of the Australian dollar.
A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to households for $50 each. The remaining tires are unsold and are added to the tire manufacturer's inventory. How much is added to GDP?
a. $8,000 b. $15,000 c. $17,000 d. $13,000
Commodity money includes such things as paper currency and travelers checks that have no commodity value in and of themselves, but which can be used to purchase commodities
Indicate whether the statement is true or false