Suppose Congress institutes an investment tax credit. What would happen in the market for loanable funds?
a. The interest rate and investment would fall.
b. The interest rate and investment would rise.
c. The interest rate would rise and investment would fall.
d. None of the above is necessarily correct.
b
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If Mousey Mike wants to not be hit, what strategy could he follow
a. Threaten to not tell b. Always not tell c. Threaten to tell d. All of the above
Nations that cannot participate in international trade (for, say, geographic or political reasons) cannot gain the benefits of
a. economic growth and security b. tariff protection c. specialization in production d. economic independence e. having choice among production possibilities
When economists say the quantity supplied of a product has decreased, they mean the
a. supply curve has shifted to the left. b. supply curve has shifted to the right. c. price of the product has risen, and consequently, suppliers are producing more of it. d. price of the product has fallen, and consequently, suppliers are producing less of it.
What is the primary benefit of a monetary system of exchange compared to a barter system?
What will be an ideal response?