When tax code changes increase investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment

________ increases the supply of dollars in the foreign exchange market

A) An increase in the exchange rate B) A decrease in the exchange rate C) A rise in the expected future exchange rate D) A fall in the interest rate in the U.S. relative to the interest rate in other countries E) A rise in the interest rate in the U.S. relative to the interest rate in other countries

If a state government reduces property taxes for residents at the same time that it increases the state income tax, what will happen to the expenditures schedule of the residents of this state?

a. It shifts upward. b. It shifts downward. c. It becomes less steep. d. It becomes steeper. e. It does not change.