Which of the following will cause the supply curve of loanable funds to shift?
a) Incentives to save.
b) Business expectations.
c) Product demand.
d) Investment tax incentives.
Ans: a) Incentives to save.
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If the federal government has a budget deficit, then it is definitely the case that
A) the tax revenue exceed government outlays. B) the tax revenue and government outlays are equal. C) the tax revenue is falling and government outlays are rising. D) government outlays exceed tax revenue. E) the tax revenue is rising and government outlays are falling.
When road construction crews work at less than 100 percent of effort during their work days in order to create overtime work for themselves, they are creating what economists describe as a
a. moral hazard problem b. work dependency problem c. principal-agent problem d. efficiency wage problem e. employment-management problem