If the government lowered the capital gains tax, what would be the effect in the loanable funds market? (Assume the government does not run a budget deficit.)
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending.
b. The supply of funds would decrease, raising the interest rate and lowering investment spending.
c. The supply of funds would decrease, lowering both the interest rate and investment spending.
d. The supply of funds would increase, lowering both the interest rate and investment spending.
e. The supply of funds would increase, lowering the interest rate and raising investment spending.
E
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $1?
A) 0 B) 1 C) 3 D) 5
A firm's marginal revenue is defined as:
a. the ratio of total revenue to total quantity produced. b. the additional output produced by lowering price. c. the additional revenue received due to technical innovation. d. the additional revenue received when selling one more unit of output.