An increase in public saving has what impact on the market for loanable funds?
A) The supply of loanable funds increases.
B) The demand for loanable funds increases.
C) The supply of loanable funds decreases.
D) The demand for loanable funds decreases.
Answer: A
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The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to help. Taking into account direct expenditure offset effects, what is its best spending option?
A) a new cruise missile for the military B) expanding the school lunch program C) constructing more low income housing D) providing textbooks for college students
When there is only one buyer in a market, there is a
A) buyer's monopoly. B) monopoly. C) monopsony. D) buyer's cooperative.
Relative to uniform-price policy, price discrimination across segmented markets (sometimes called third-degree price discrimination):
a. always reduces welfare. b. always increases welfare. c. may increase welfare if total output falls. d. may increase welfare if total output rises.
The sale of bonds
a. and stocks to raise money is called debt finance. b. and stocks to raise money is called equity finance. c. to raise money is called debt finance, while the sale of stocks to raise funds is called equity finance. d. to raise money is called equity finance, while the sale of stocks to raise funds is called debt finance.