If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?

The incidence of a payroll tax is borne by both employers and employees

a. True b. False Indicate whether the statement is true or false

Which of the following best describes the cause-and-effect chain of an expansionary monetary policy?

A. An increase in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP. B. A decrease in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP. C. A decrease in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP. D. An increase in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP.