A tax cut that increases the budget deficit results in ________ in the ________ loanable funds
A) an increase; supply of
B) a decrease; supply of
C) an increase; demand for
D) a decrease; demand for
E) no change; either the demand for or the supply of
C
Economics
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What happens when the Federal Reserve purchases U.S. government bonds?
A) Interest rates rise because bonds become scarcer. B) Commercial bank reserves increase. C) The national debt declines in size. D) The growth rate of the money stock falls. E) All of the above occur.
Economics
Refer to Figure 4-7 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
What will be an ideal response?
Economics