Suppose that Congress were to institute an investment tax credit. What would happen in the market for loanable funds?
a. The demand for loanable funds would shift left.
b. The supply of loanable funds would shift left.
c. The demand for loanable funds would shift right.
d. The supply of loanable funds would shift right.
c
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Which of the following is true about the United States?
A. There have been recessions approximately every ten years. B. The pattern of recessions does not occur on a regular basis. C. Periods of economic growth and recessions occur in two-year patterns. D. Recessions always last less than one year. E. Recessions in the United States are generally more severe than they are in other countries.
Since 1948, the history of real wage rates generally shows that
A. prices and wages have risen at the same rate. B. prices have risen at a slower rate than wages. C. prices have risen faster than wages. D. real wages have remained constant over the period.