State what, if anything, each of the following does to the supply or demand of loanable funds
a. net capital outflow increases at each interest rate
b. domestic investment increases at each interest rate
c. the government deficit increases
d. private saving increases
a. the demand for loanable funds increases
b. the demand for loanable funds increases
c. the supply of loanable funds decreases
d. the supply of loanable funds increases
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Beginning in December 2007, the Fed began cutting the federal funds rate from 4.25% to less than 1%. During this time, it was engaged in ________ monetary policy in order to reduce the threat of a ________ in the US economy
A) expansionary; stagflation B) contractionary; stagflation C) expansionary; recession D) contractionary; recession
The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease led to a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.