Suppose Congress institutes an investment tax credit. What would happen in the market for loanable funds?
a. The interest rate and investment would fall.
b. The interest rate and investment would rise.
c. The interest rate would rise and investment would fall.
d. None of the above is necessarily correct.
b
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Collusion is
A) legal under U.S. antitrust laws if the intent is to increase competition. B) necessary for firms to raise money by borrowing from investors or from banks in order to fund research and development required to develop new products. C) an agreement among firms to charge the same price or otherwise not to compete. D) common among monopoly firms.
According to the benefits-received principle, those who receive the benefits from a government program should pay the taxes that support the program
Indicate whether the statement is true or false