Exam 6: Economic Growth, The Financial System, and Business Cycles

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

What two factors are the keys to determining labour productivity?

Equilibrium in the loanable funds market determines

If you invest $10,000 in a bond that earns 8% interest per year, how many years will it take to double your money?

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

In 2015 Bombardier received $1 billion in support from the government of Quebec, the official reason for this support was

Figure 6.6 Alt text for Figure 6.6: In figure 6.6, a graph shows loanable funds market in equilibrium. Long description for Figure 6.6: The x-axis is labelled, quantity of loanable funds (millions of dollars), ranging from 0 to 180 in increments of 30.The y-axis is labelled real interest rate, ranging from 0 to 6% in increments of 1.2 intersecting lines are shown.A line labelled D begins at the top left corner and slopes down toward the end of the x-axis.Another line labelled S begins near the origin and slopes upward to the top right corner.5 points are plotted on these two lines as (90, 5), (90, 3), (120, 4), (150, 5), (150, 3).These points are connected to their respective coordinates on the x-axis and y-axis using dotted lines. -Refer to Figure 6.6.The market is in equilibrium.If the government budget deficit rises, which of the following would you expect to see?

One difference between stocks and bonds is that

How does a decrease in the tax rate on income earned on saving affect saving, investment, the interest rate, and economic growth?

If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from

Which of the following would encourage economic growth through increases in the capital stock?

Which of the following will increase the real interest rate?

In 2006, the federal government ended the special tax treatment of dividends paid by income trusts, essentially raising the marginal tax rate on dividends.Using the loanable funds market, describe what will happen to saving, investment, economic growth, the real interest rate, and the quantity of loanable funds exchanged.

An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.

All else equal, a ________ would be mostly likely to ________ demand for vacation travel and ________ demand for Bombardier aircraft.

Since 1980,

Economic growth depends more on technological change than on increases in capital per hour worked.

Explain why increasing the government budget deficit can decrease investment spending.

When a recession ends,

Inflation usually increases during a recession and decreases during an expansion.