Answer:
<em>The question is incomplete, complete question is as follows:</em>
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.
Shift the appropriate curve on the graph to reflect this change.
This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.
Explanation:
<em>To decrease.</em>
Saving is the basis of the loanable finance supply.
<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>
The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.
Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.
Answer:
limited problem solving
Explanation:
Limited problem solving -
It refers to the process of buying certain goods and services , when the person have only limited knowledge about the product , is referred to as limited problem solving .
People having lack of knowledge may even end up buying the wrong product .
Hence , from the given scenario of the question ,
The correct term is limited problem solving .
The answer is: B) Buying securities (Bonds)
Money supply refers to the amount of money that circulated in the country. When government buy securities from the private sector, the money would be exchanged from the government's purse to the private sector's. If this occurs, the amount of money that circulated would be increased.
Answer:
I would have to say A. Yes
Explanation:
If they have a stronger dollar that doesn't drop in value quickly then they can keep on accepting that currency reliably.