Things need to knoq

Question 1

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

Answer 1

nothing

Question 2

formula to find national saving

Answer 2

y-c-g

Question 3

formula to find private saving

Answer 3

y-t-c

Question 4

formula to find public savings

Answer 4

t-g

Question 5

Suppose a country repealed its investment tax credit.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

Answer 5

nothing

Question 6

an increase in investment spending causes the real interest to

Answer 6

increase

Question 7

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

Answer 7

would decrease

Question 8

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

Answer 8

supply would shift left

Question 9

A budget deficit

Answer 9

changes the supply

Question 10

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

Answer 10

the goverment reduced the tax rate on savings