Exam 26: Saving, investment, and the Financial System

Supposing equilibrium in the loanable funds market exists use the following numbers to determine the quantity of funds supplied in the loanable funds market.

Use the following table to answer the following questions. Table 26-2 -Refer to Table 26-2.Which company had the lowest dollar dividend?

Which of the following is not an important stock exchange in the United States?

Fred is considering expanding his dress shop.If interest rates rise he is

It is claimed that mutual funds have two advantages.The first is that mutual funds allow people with small amounts of money to diversify.The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings.

Lekeisha's income exceeds her expenditures.Lekeisha is a

Joan uses some of her income to buy mutual fund shares.A macroeconomist refers to Joan's purchase as investment.

What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?

Profits paid out to stockholders are

People who buy newly issued stock in a corporation such as Crate and Barrel provide

Which of the following could explain an increase in the interest rate and a decrease in the equilibrium quantity of loanable funds?

ACME Pumps had a price to earnings ratio of 15,paid a dividend of $1,and retained earnings of $2 a share.What was the price of a share of its stock?

Explain why the demand for loanable funds slopes downward and the supply of loanable funds slopes upward.

The ratio of debt to GDP in the United States tended to fall

Other things the same,an increase in the interest rate

Suppose that Congress were to institute an investment tax credit.What would happen in the market for loanable funds?

The model of the market for loanable funds shows that an investment tax credit will cause interest rates to rise and investment to rise.Yet we also suppose that higher interest rates lead to lower investment.How can these two conclusions be reconciled?

Suppose that the market for loanable funds is in equilibrium.What would happen in the market for loanable funds,other things the same,if the Congress and President increased the maximum contribution limits to 401(k)and 403(b)tax-deferred retirement accounts?

Which of the following would a macroeconomist consider as investment?

If there is a surplus of loanable funds,then