Exam 21: Saving and Capital Formation

Where Y is GDP, C is consumption, I is investment, (G )is government spending, (T )is net taxes, and there is no international trade, the government budget deficit equals:

A nation's saving equals its ________ income less its spending on ________.

A stock is a measure defined:

Mo's current income is $100 more per month than his current consumption needs. He decides to use the $100 to reduce his credit card debt. As a result, his:

Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.

As the real interest rate decreases, the quantity of saving supplied ________ and the quantity of saving demanded ________.

Where Y is GDP, C is consumption, I is investment, G is government spending, and there is no international trade, national saving equals:

Which of the following is a flow?

The introduction of a new technology that raises the marginal product of new capital will:

Saving for protection against unexpected setbacks-such as the loss of a job or a medical emergency-is called ________ saving.

If government spending increases by $1 million while net taxes are unchanged, then:

Holding other factors constant, a higher relative price of a firm's output will:

The real rate of interest measures the ________ of capital investment.

The excess of government spending over tax collections is:

If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ________, and her wealth ________.

Capital gains are:

Holding other factors constant, if terrorist attacks increase the desire for precautionary saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.

As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.

Saving done for the purpose of leaving an inheritance is called ________ saving.

Public saving is negative when: