An increase in the marginal rate of return on bread-mixing machines would
a. reduce the supply of loanable funds and reduce the equilibrium market interest rate
b. reduce the supply of loanable funds and increase the equilibrium market interest rate
c. increase the supply of loanable funds and reduce the equilibrium market interest rate
d. increase the supply of loanable funds and increase the equilibrium market interest rate
e. increase the demand for loanable funds and increase the equilibrium market interest rate
E
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If the government raises income taxes, then the labor
A) supply curve shifts rightward. B) demand curve shifts leftward. C) demand curve shifts rightward. D) supply curve shifts leftward. E) Both answers B and D are correct.
Is it ever rational for unions to strike if they know that their members will never be able to make up for the wages they lose during the strike? Explain