Question 1

In the loanable funds market, demanders of funds are ________ and suppliers of funds are ________.

Accepted Answer

A)  firms and the government if it has a budget surplus; households and the government if it has a budget deficit 
B)  firms and the government if it has a budget deficit; households and the government if it has a budget surplus 
C)  households and the government if it has a budget surplus; firms and the government if it has a budget deficit 
D)  households and the government if it has a budget deficit; firms and the government if it has a budget surplus 
E)  households and firms; the government if it has a budget deficit 
A)  firms and the government if it has a budget surplus; households and the government if it has a budget deficit 
B)  firms and the government if it has a budget deficit; households and the government if it has a budget surplus 
C)  households and the government if it has a budget surplus; firms and the government if it has a budget deficit 
D)  households and the government if it has a budget deficit; firms and the government if it has a budget surplus 
E)  households and firms; the government if it has a budget deficit

Question 2

"In the loanable funds market, when there is a shortage of funds, the real interest rate will increase." Explain whether the previous statement is correct or not.

Accepted Answer

The statement is correct.The shortage of

Question 3

The decrease in the value of the capital that results from its use and obsolescence is

Accepted Answer

A)  appreciation. 
B)  deconstruction. 
C)  depreciation. 
D)  gross investment. 
E)  net investment. 
A)  appreciation. 
B)  deconstruction. 
C)  depreciation. 
D)  gross investment. 
E)  net investment.

Question 4

-The figure above shows the loanable funds market.If the real interest rate is 10 percent, then

Accepted Answer

A)  there is a shortage in the loanable funds market. 
B)  there is a surplus in the loanable funds market. 
C)  the interest rate must increase. 
D)  the government must intervene in order to prevent a credit crisis. 
E)  savers will exit the market because of the high opportunity cost of saving. 
A)  there is a shortage in the loanable funds market. 
B)  there is a surplus in the loanable funds market. 
C)  the interest rate must increase. 
D)  the government must intervene in order to prevent a credit crisis. 
E)  savers will exit the market because of the high opportunity cost of saving.

Question 5

A share of stock is a

Accepted Answer

A)  promise to pay specified sums of money on specified dates. 
B)  certificate of ownership and claim to the profits made by a firm. 
C)  collection of funds that travels the world looking for the highest return. 
D)  set of demanders and suppliers for the savings of households. 
E)  form of investment in physical capital. 
A)  promise to pay specified sums of money on specified dates. 
B)  certificate of ownership and claim to the profits made by a firm. 
C)  collection of funds that travels the world looking for the highest return. 
D)  set of demanders and suppliers for the savings of households. 
E)  form of investment in physical capital.

Question 6

A decrease in wealth leads to a

Accepted Answer

A)  leftward shift of the demand for loanable funds curve. 
B)  downward movement along the supply of loanable funds curve. 
C)  rightward shift of the supply of loanable funds curve. 
D)  leftward shift of the supply of loanable funds curve. 
E)  rightward shift of the demand for loanable funds curve. 
A)  leftward shift of the demand for loanable funds curve. 
B)  downward movement along the supply of loanable funds curve. 
C)  rightward shift of the supply of loanable funds curve. 
D)  leftward shift of the supply of loanable funds curve. 
E)  rightward shift of the demand for loanable funds curve.

Question 7

-In the figure above, the leftward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₃, could be the result of

Accepted Answer

A)  a fall in the interest rate. 
B)  a decrease in expected profit. 
C)  an advancement in technology. 
D)  an increase in the population. 
E)  a rise in the interest rate. 
A)  a fall in the interest rate. 
B)  a decrease in expected profit. 
C)  an advancement in technology. 
D)  an increase in the population. 
E)  a rise in the interest rate.

Question 8

One type of demander in a financial market

Accepted Answer

A)  wants funds to purchase financial capital. 
B)  wants funds to purchase physical capital. 
C)  lends funds to purchase financial capital. 
D)  lends funds to purchase physical capital. 
E)  wants physical capital in order to purchase financial capital. 
A)  wants funds to purchase financial capital. 
B)  wants funds to purchase physical capital. 
C)  lends funds to purchase financial capital. 
D)  lends funds to purchase physical capital. 
E)  wants physical capital in order to purchase financial capital.

Question 9

If there is no Ricardo-Barro effect, a government budget surplus

Accepted Answer

A)  increases the supply of loanable funds. 
B)  decreases the supply of loanable funds. 
C)  increases the demand for loanable funds. 
D)  decreases the demand loanable funds. 
E)  has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate. 
A)  increases the supply of loanable funds. 
B)  decreases the supply of loanable funds. 
C)  increases the demand for loanable funds. 
D)  decreases the demand loanable funds. 
E)  has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.

In the loanable funds market, demanders of funds are and suppliers of funds are .

"In the loanable funds market, when there is a shortage of funds, the real interest rate will increase." Explain whether the previous statement is correct or not.

The decrease in the value of the capital that results from its use and obsolescence is

-The figure above shows the loanable funds market.If the real interest rate is 10 percent, then

A share of stock is a

A decrease in wealth leads to a

-In the figure above, the leftward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₃, could be the result of

One type of demander in a financial market

If there is no Ricardo-Barro effect, a government budget surplus

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 10: Finance, Saving, and Investment

In the loanable funds market, demanders of funds are ________ and suppliers of funds are ________.

"In the loanable funds market, when there is a shortage of funds, the real interest rate will increase." Explain whether the previous statement is correct or not.

The decrease in the value of the capital that results from its use and obsolescence is

-The figure above shows the loanable funds market.If the real interest rate is 10 percent, then

A share of stock is a

A decrease in wealth leads to a

-In the figure above, the leftward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₃, could be the result of

One type of demander in a financial market

If there is no Ricardo-Barro effect, a government budget surplus

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

In the loanable funds market, demanders of funds are and suppliers of funds are .