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Suppose an investment tax credit was passed that encouraged businesses to borrow more for investment. What would happen in the market for loanable funds? 

Suppose the government increases the capital gains tax. This discourages saving. The policy will result in

If a government went from a deficit to a surplus, government

Which of the following are potential problems with using GDP as a measure of the well-being of a nation?  (Select all that apply)

When real GDP increases over time, it is due to

Suppose the price of a steak dinner was $20 in 2003. If the CPI was 200 in 2003 and 10 in 1903, what would the same steak dinner have cost in 1903?

In an economics class, we use the word investment to refer to the purchase of stocks, bonds, mutual funds, and other financial instruments.

Suppose GDP for an economy is $12,000. If consumption is $7,000, investment is $2,000, and government spending is $4,000, what is net exports? 

In 1935, a National guitar cost $62. In 2011 dollars, the same guitar would cost $1,017.80. If the CPI was 13.7 in 1935, what was the CPI in 2011?

You will use this information for the next few questions.  Consider an economy that produces only two goods: guitars and banjos. In 2010, 50 guitars and 25 banjos were produced. In 2011, 100 guitars and 50 banjos were produced. In 2012, 150 guitars and 75 banjos were produced. The price of a guitar was $300 in 2010, $400 in 2011, and $600 in 2012. The price of a banjo was $200 in 2010, $250 in 2011, and $300 in 2012.  Suppose that the results of a survey of consumers indicates that the average consumer buys a basket of 2 guitars and 1 banjo. What is the CPI for 2011 using 2010 as the base year?