A decrease in government spending and the enactment of an investment tax credit would definitely cause
a. the quantity of loanable funds traded to increase.
b. the interest rate to increase.
c. the quantity of loanable funds traded to decrease.
d. the interest rate to decrease.
a
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Which of the following is likely to shift the credit demand curve of a computer manufacturer to the left, assuming all else equal?
A) An increase in the scale of production B) A decrease in the scale of production C) An increase in the real interest rate D) A decrease in the real interest rate
A recessionary gap is the amount by which
A) the short-run equilibrium level nominal GDP is above the short-run real GDP. B) the short-run equilibrium level nominal GDP is below the short-run real GDP. C) total planned real expenditures exceed total planned production in the long run. D) the short-run equilibrium level of real GDP is below the full-employment level of real GDP.