Question 1

The greater a household's ________ the less is its saving.

Accepted Answer

A)  return from saving 
B)  wealth 
C)  disposable income 
D)  expected future profits 
A)  return from saving 
B)  wealth 
C)  disposable income 
D)  expected future profits

Question 2

What are the factors that change the supply of saving and shift the supply of loanable funds curve?

Accepted Answer

There are three main factors that influe

Question 3

Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources.

Accepted Answer

The formula showing how households can d

Question 4

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion. Suppose that depreciation is 12 percent of GDP. ________ investment in 2006 was ________ billion.

Accepted Answer

A)  Gross; $357 
B)  Gross; $216 
C)  Gross; $335 
D)  Net; $216 
A)  Gross; $357 
B)  Gross; $216 
C)  Gross; $335 
D)  Net; $216

Question 5

The U.S. personal savings rate for the first quarter of 2012 dropped to its lowest level since the start of the recession. Americans stashed away 3.6 percent of personal income in the first quarter, down from 4.2 percent in the fourth quarter and a near-term peak of 6.2 percent in the second quarter of 2009. Which of the following could explain this drop in savings?

Accepted Answer

A)  a decrease in wealth from a fall in stock prices 
B)  a rise in the real interest rate 
C)  an increase in disposable income as the job market recovers 
D)  a rise in consumer confidence that their incomes will be higher in the future 
A)  a decrease in wealth from a fall in stock prices 
B)  a rise in the real interest rate 
C)  an increase in disposable income as the job market recovers 
D)  a rise in consumer confidence that their incomes will be higher in the future

Question 6

If the economy's capital stock decreases over time

Accepted Answer

A)  net investment is positive. 
B)  depreciation is less than zero. 
C)  depreciation exceeds gross investment. 
D)  gross investment equals net investment. 
A)  net investment is positive. 
B)  depreciation is less than zero. 
C)  depreciation exceeds gross investment. 
D)  gross investment equals net investment.

Question 7

When the actual real interest rate is less than the equilibrium real interest rate

Accepted Answer

A)  the equilibrium real interest rate will rise. 
B)  borrowers find it difficult to borrow. 
C)  there is a shortage of loanable funds. 
D)  Both answers B and C are correct. 
A)  the equilibrium real interest rate will rise. 
B)  borrowers find it difficult to borrow. 
C)  there is a shortage of loanable funds. 
D)  Both answers B and C are correct.

The greater a household's ________ the less is its saving.

What are the factors that change the supply of saving and shift the supply of loanable funds curve?

Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources.

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion. Suppose that depreciation is 12 percent of GDP. investment in 2006 was billion.

If the economy's capital stock decreases over time

When the actual real interest rate is less than the equilibrium real interest rate

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 7: Finance, Saving, and Investment

The greater a household's ________ the less is its saving.

What are the factors that change the supply of saving and shift the supply of loanable funds curve?

Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources.

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion. Suppose that depreciation is 12 percent of GDP. ________ investment in 2006 was ________ billion.

If the economy's capital stock decreases over time

When the actual real interest rate is less than the equilibrium real interest rate

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion. Suppose that depreciation is 12 percent of GDP. investment in 2006 was billion.