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:
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Q43: An increase in the corporate profits tax
Q44: From 1970 through 1997, the domestic government
Q45: The Federal Reserve issues a report indicating
Q46: The demand curve for bonds would be
Q47: Suppose that Congress passes an investment tax
Q49: If the federal government decreases its purchases
Q50: Businesses typically issue bonds to finance
A)their inventories.
B)payments
Q51: Investors value liquidity in an asset because
A)liquid
Q52: The demand curve for bonds would be
Q53: During a period of economic expansion, when
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