An increase in wealth ________ saving supply, and the supply of loanable funds curve ________
A) does not change; does not shift
B) decreases; shifts rightward
C) increases; shifts rightward
D) increases; shifts leftward
E) decreases; shifts leftward
E
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The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The expenditure multiplier is equal to
A) 1.25. B) 10. C) 0.8. D) 2. E) 5.
Hostile takeovers of corporations have been in the business news for some time now. Several states have passed laws making it harder for out-of-state corporations to acquire firms headquartered in their states. Several corporations have established
"golden parachutes" to give executives high payoffs in case of hostile takeover. What market imperfection is likely to be worsened by these actions? Explain.