Which of the following is likeliest to have decreased at point D?
a. disposable income
b. household assets
c. household spending
d. the tax rate
d. the tax rate
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When the price level rises and the money wage rate does not change,
A) the quantity of potential GDP increases because the quantity of real GDP supplied increases. B) the quantity of real GDP supplied increases as more businesses start up and potential GDP does not change. C) existing businesses do not change their level of output. D) profits fall and more businesses fail. E) the quantity of real GDP supplied decreases as more businesses fail and potential GDP does not change.
If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds, and ________
A) shortage; savers increase their saving supply to restore the equilibrium B) shortage; borrowers have an easy time finding the funds they want C) surplus; some borrowers cannot find the funds they want D) shortage; some borrowers cannot find the funds they want E) surplus; borrowers have an easy time finding the funds they want