If consumers decide to be more frugal and save more out of their income, then this will cause
A) a shift in the supply curve for loanable funds to the right.
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 movement to the left along the supply curve for loanable funds.
Answer: A
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On efficiency grounds, corrective taxes should not be given as compensation to those individuals harmed by negative externalities
a. True b. False
When a bank sells capital stock (equity shares) in return for cash:
A. The capital stock increases the assets side and the cash increases the liabilities side B. The capital stock decreases the liabilities and the cash increases the assets side C. The capital stock increases the net worth and the cash increases the liabilities D. The capital stock increases the net worth and the cash increases the assets side