According to the loanable funds model,which of the following events would result in higher interest rates and greater saving?
A) Firms become pessimistic about the future and,as a result,they cut back on their plans to buy new equipment and build new factories.
B) The government goes from running a budget deficit to running a budget surplus.
C) Congress passes a reform of the tax laws that encourages greater saving.
D) Congress passes a reform of the tax laws that encourages greater investment.
Correct Answer:
Verified
Q90: The source of the supply of loanable
Q91: A policy that induces people to save
Q92: Interest rates fall and investment falls.Which of
Q93: Which of the following counts as part
Q94: If the government instituted an investment tax
Q96: Which of the following events could explain
Q97: In the market for loanable funds,the interaction
Q98: Which of the following is included in
Q99: Which of the following events could explain
Q100: Which of the following is correct?
A)In a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents