Institutions that help to match one person's saving with another person's investment are collectively called the
Answer
banking system
central bank
monetary system
financial system
Question 3
Question
The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves - Which of the following events would shift the supply curve from S1 to S2?
Answer
In response to tax reform, firms are encouraged to invest more than they previously invested
In response to tax reform, households are encouraged to save more than they previously saved
Government goes from running a balanced budget to running a budget deficit