What would happen in the market for loanable funds if the government were to increase the tax on interest income?
a. Interest rates would rise.
b. Interest rates would be unaffected.
c. Interest rates would fall.
d. The effect on the interest rate is uncertain.
a
Economics
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When comparing the velocity of M2 (V2), with the velocity of M1 (V1), the evidence shows that V2 has been __________ and V1 has been __________ over time
A) relatively stable; relatively stable B) relatively stable; relatively unstable C) relatively unstable; relatively stable D) relatively unstable; relatively unstable
Economics
If a monopolist were to produce in the inelastic segment of its demand curve
A) total revenue would be at a maximum. B) total revenue would be at a minimum. C) the firm would maximize profits. D) a further drop in the price will change quantity demanded less than proportionately.
Economics