The government borrows $1 billion to fund a large tax cut. How does this affect the lendable funds market? A. Supply shifts left B. Supply shifts right C. Demand shifts left D. Demand shifts right

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Average Tax Rate Tax Revenue ($B) 20% $250 40 300 60 250 80 200     Refer to the table. If the current tax rate is 60 percent, supply-side economists would advocate   Multiple Choice   lowering tax rates to 20 percent, or lower if possible.   lowering tax rates to 40 percent.   keeping tax rates at 60 percent.   raising tax rates to 80 percent.

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If the government changes the tax code in a way that encourages investment, Select one: a. the demand for loans will shift to the right leading to a higher interest rate. b. None of the answers are correct c. the demand for loans will shift to the left leading to a lower interest rate. d. the supply of loans will shift to the right, leading to a lower interest rate. e. the supply of loans will shift to the left, leading to a higher interest rate.

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Suppose equity and real estate values increase so that families with investments in stocks or homes are wealthier.  What happens to the market demand for assets?   A. Demand for assets shifts rightward   B. Demand for assets does not change   C. Demand for assets shift leftward

If there is a surplus of loanable funds, then the quantity of loanable funds    a. supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium.     b. demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium.     c. demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium.     d. supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium

QUESTION 4o If you had a budget surplus, which of the following choices would most likely increase that surplus? O a. Change jobs b. Work fewer hours c. Save and invest d. Borrow more O e. Increase spending

Figure 8-24. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax. 9 Tax Revenue a∞rontm ~ - X 8 7 6 5 4 3 2 1 A B Refer to Figure 8-24. Tax revenue would [I B. All of the above are correct. A. decrease if the economy began at point C and then the tax rate was increased. Answer Key:B Tax Size OC. decrease if the economy began at point B and then the tax rate was decreased. D. increase if the economy began at point F and then the tax rate was decreased.