Exam 10: Savings, Investment Spending, and the Financial Syst

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GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. What is the government budget balance?

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The primary function of the financial system is to channel funds from savers to investors.

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An increase in the level of business opportunity will generally _____ the loanable funds demand curve.

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GDP is the value of consumption spending _____ investment spending _____ government purchases _____ the value of exports _____ spending on imports.

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In an open economy, total investment equals:

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When interest rates decrease, the demand for commercial and residential real estate will _____ and the price of real estate will _____.

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Which item qualifies as an asset from the viewpoint of a household?

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Amazon's primary type of investment spending is the purchase of warehouses and server farms handling data.

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A budget deficit occurs when tax revenue is higher than government spending plus government transfers.

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The expenses involved in actually putting together and executing a deal are called liquidity costs.

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Use the following to answer questions: Use the following to answer questions:   -(Figure: Loanable Funds Market) Use Figure: Loanable Funds Market. The equilibrium interest rate and total quantity of lending are: -(Figure: Loanable Funds Market) Use Figure: Loanable Funds Market. The equilibrium interest rate and total quantity of lending are:

(Multiple Choice)
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Crowding out is a phenomenon in which:

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When a corporation borrows money from a bank in exchange for a contract to repay it on a schedule, the corporation is:

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If the interest rate in the market for loanable funds is above the equilibrium rate:

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Use the following to answer questions: Use the following to answer questions:   -(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. A decrease in government borrowing will shift the demand for loanable funds to the _____ and _____ the interest rate. -(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. A decrease in government borrowing will shift the demand for loanable funds to the _____ and _____ the interest rate.

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When expected inflation was high during the 1970s, interest rates were low.

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Owners of stock may receive income in the form of:

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Investment spending in macroeconomics refers to:

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A budget surplus exists when:

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In financial markets:

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