If the supply of loanable funds decreases,
a. more loanable funds will be made available in the loanable funds market
b. the rate of interest will increase
c. the rate of interest will decrease
d. the demand for loanable funds will increase
e. the supply curve will shift to the right
B
Economics
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Suppose that the market for coffee is in equilibrium at a price of $9.50 per pound and a monthly quantity of 20 million pounds. News of a drought in Brazil arrives so that people know that the supply of coffee months from now will be sharply reduced
What, if anything, will happen in the coffee market now? Explain.
Economics
A tax cut will unambiguously lower income-tax revenue
Indicate whether the statement is true or false
Economics