During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange right.
b. shift the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left.
c. shift the demand for loanable funds left and shift the supply of dollars in the market for foreign-currency exchange right.
d. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange left.
b
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Which of the following statements is true?
A) Firms normally prefer wage cuts over lay-offs. B) Cuts in wages boost worker morale. C) Workers normally resist increases in wages. D) Wage rigidity can cause unemployment.
If income is unequally distributed in an economy, increases in GDP may not raise well-being in an economy
Indicate whether the statement is true or false