Any change in the economy that raises desired national saving for a given value of the real interest rate will shift the desired national saving curve to
A. the right and decrease the real interest rate.
B. the left and decrease the real interest rate.
C. the left and increase the real interest rate.
D. the right and increase the real interest rate.
Answer: A
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If incomes were equal in an economy can you think of any other problems that might exist as a result of this equality?
What will be an ideal response?
The ISLM model can be used to derive
A) aggregate demand. B) aggregate supply. C) the money multiplier. D) the long-run economic growth rate.
During the colonial period, regulation of business activities was the right of government and its duty—extensive regulation was done, such as licensing, inspection, price fixing, etc
Which statement best describes regulation in the decades after 1789? (a) Regulation continued at about the same level as during the colonial period. (b) As commerce and manufacturing became more complex, the old police-power controls by detailed inspection became increasingly difficult to maintain and many controls were abolished by the states. (c) Because the economy was becoming more complicated, the task of regulation shifted to the federal government. (d) Regulation was abandoned because it was inconsistent with property rights guaranteed by the Constitution.
Which tax system requires all taxpayers to pay the same percentage of their income in taxes?
a. a regressive tax b. a proportional tax c. a progressive tax d. a horizontal equity tax