Things need to knoq Flashcards Preview

Macroeconomics > Things need to knoq > Flashcards

Flashcards in Things need to knoq Deck (10)
Loading flashcards...
1
Q

What would happen in the market for loanable funds if the government were to decrease the tax rate on
interest income

A

nothing

2
Q

formula to find national saving

A

y-c-g

3
Q

formula to find private saving

A

y-t-c

4
Q

formula to find public savings

A

t-g

5
Q

Suppose a country repealed its investment tax credit. The effects of this are represented by shifting the

A

nothing

6
Q

an increase in investment spending causes the real interest to

A

increase

7
Q

f Congress increased the tax rate on interest income, investment
and savings

A

would decrease

8
Q

f the government institutes policies that diminish incentives to save, then in the loanable funds market

A

supply would shift left

9
Q

A budget deficit

A

changes the supply

10
Q

what would xplain a decrease in interest rates together with an increase in
investment

A

the goverment reduced the tax rate on savings