Which factor will decrease the demand for loanable funds?
A. A change in the tax law to exempt savings from taxation
B. Expansion of social insurance to cover more fully the cost of retirement
C. A general business recession that produces high rates of unemployment
D. A technological advance that increases returns on investments
C. A general business recession that produces high rates of unemployment
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When the government runs a budget deficit, we would expect to see that
A) public saving is positive. B) private saving will fall. C) G + TR < T. D) investment will fall.
Collusion occurs when
A) there is an agreement among firms to charge the same price or otherwise not to compete. B) firms refuse to follow their price leaders. C) a firm chooses a level of output to maximize its own profit. D) two firms' price and output decisions come into conflict.