Real interest rate (percent) L₁ 4₂ 11) Refer to Figure above. A shift from D2 to Di will A) an increase in expected future profits B) an increase in net exports C) an increase in corporate taxes D) a decrease in tax credits for savings Supply D₁ D₂ Loanable funds (dollars per year) result from which of the following?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.2P
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Real interest
rate (percent)
C) an increase in corporate taxes
D) a decrease in tax credits for savings
Supply
D₁
L₁
4
Loanable funds
(dollars per year)
11) Refer to Figure above. A shift from D₂ to Di will result from which of the following?
A) an increase in expected future profits
B) an increase in net exports
A) an increase in the equilibrium real interest rate.
B) a decrease in the equilibrium real interest rate.
D₂
12) All else equal, an increase in net exports accompanied by a decrease in expected future
profits would definitely result in
C) an increase in the equilibrium level of saving and investment.
D) a decrease in the equilibrium level of saving and investment.
Transcribed Image Text:Real interest rate (percent) C) an increase in corporate taxes D) a decrease in tax credits for savings Supply D₁ L₁ 4 Loanable funds (dollars per year) 11) Refer to Figure above. A shift from D₂ to Di will result from which of the following? A) an increase in expected future profits B) an increase in net exports A) an increase in the equilibrium real interest rate. B) a decrease in the equilibrium real interest rate. D₂ 12) All else equal, an increase in net exports accompanied by a decrease in expected future profits would definitely result in C) an increase in the equilibrium level of saving and investment. D) a decrease in the equilibrium level of saving and investment.
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