Which of the following policies would increase the demand for loanable funds and thus investment spending?
a. A reduction in the investment tax credit.
b. An increase in the corporate profits tax.
c. A reduction in the capital gains tax.
d. An increase in the investment tax credit.
e. An increase in transfer payments.
D
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For any competitive labor market, changes that increase the opportunity cost of work will:
A. increase the labor supply and shift the supply curve right. B. decrease the labor supply and shift the supply curve right. C. decrease the labor supply and shift the supply curve left. D. increase the labor supply and shift the supply curve left.
Suppose the accompanying table describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47The monopolist's marginal revenue from selling the 4th unit of output is less than $7 because:
A. marginal cost is greater than $3. B. demand is perfectly elastic. C. the consumer only pays $4 for the 4th unit. D. it has to charge $1 less for each of the first 3 units of output.