A decrease in the government's budget deficit will
a. increase the supply of loanable funds, lower the interest rate, and increase investment spending
b. reduce the supply of loanable funds, raise the interest rate, and reduce investment
c. increase the demand for loanable funds, raise the interest rate, and reduce investment spending
d. reduce the demand for loanable funds, lower the interest rate, and increase investment spending
e. increase the supply of loanable funds, reduce the demand for loanable funds, leave the interest rate unchanged, and increase investment spending
D
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Under a market system of resource allocation
a. prices determine what consumers buy while the government determines what firms produce b. prices determine what firms produce while the government determines what consumers buy c. prices determine both what firms produce and what consumers buy d. the government determines both what firms produce and what consumers buy e. the government allocates resources while prices allocate goods and services
Define investment? The meaning of investment is different for economists. Explain