Multiple Choice
In an effort to increase government revenue, Congress and the president decide to increase the corporate profits tax. The likely result will be
A) the supply curve for bonds shifts to the right.
B) the demand curve for loanable funds shifts to the left.
C) the equilibrium interest rate rises.
D) the equilibrium price of bonds falls.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: A decrease in expected inflation<br>A)usually leads to
Q15: In the bond market, the seller is
Q16: A one-year discount bond with a face
Q17: During an economic recession,<br>A)the bond demand and
Q18: As wealth increases in the economy, we
Q20: If there is an excess supply of
Q21: In an open economy, desired domestic lending<br>A)must
Q22: The bond supply curve slopes up because<br>A)interest
Q23: As a result of higher expected inflation,<br>A)the
Q24: As wealth increases in the economy, savers