The horizontal investment curve used to derive the TE curve implies that investment is
A) directly related to Real GDP.
B) indirectly related to Real GDP.
C) independent of Real GDP.
D) sometimes directly and sometimes indirectly related to Real GDP, depending upon whether it is planned capital or planned inventory investment.
C
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If consumers decide to be more frugal and save more out of their income, then this will cause
A) a movement to the left along the supply curve for loanable funds. B) a shift in the supply curve for loanable funds to the left. C) a movement to the right along the supply curve for loanable funds. D) a shift in the supply curve for loanable funds to the right.
Many state governments use lotteries to raise revenue. If a lottery is viewed as a tax, is it most likely a progressive tax or a regressive tax?
What information would you need to determine whether the burden of a lottery is progressive or regressive?