A policy that offers parents a tax reduction based on how much ...

[SAVANNAHHOOPER23]

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.
 
  A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase

Question 2

When deflation occurs
 
  A) the nominal interest rate is greater than the real interest rate.
  B) the nominal interest rate is equal to the real interest rate and inflation is negative.
  C) the real interest rate is greater than the nominal interest rate.
  D) the nominal interest rate is equal to the real interest rate and inflation is positive.

[leeeep]

Answer to Question 1

B

Answer to Question 2

C

[SAVANNAHHOOPER23]

Thanks for the timely response, appreciate it

[jackie]

Gracias!