Exam 10: Savings, Investment Spending, and the Financial System

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Use the following to answer questions: Scenario: Closed Economy S = I GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. -(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = I. How much is private saving?

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Use the following to answer questions : Use the following to answer questions :   -(Table: Investment Spending, Private Spending, and Capital Inflows) Look at the table Investment Spending, Private Spending, and Capital Inflows. What is the budget balance as a percentage of GDP in Northlandia? -(Table: Investment Spending, Private Spending, and Capital Inflows) Look at the table Investment Spending, Private Spending, and Capital Inflows. What is the budget balance as a percentage of GDP in Northlandia?

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Which of the following is an index of 30 leading companies, such as Microsoft, Walmart, and General Electric?

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Use the following to answer questions : Scenario: Open Economy S = I In an open economy GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion, and imports are $3 trillion. -(Scenario: Open Economy S = I) Look at the scenario Open Economy S = I. How much is the net capital inflow?

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Suppose that Jim just got a $20,000 loan from his credit union to buy a new car. The loan is a _____ for Jim and a _____ for the credit union.

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Which of the following assets is the MOST liquid?

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According to the efficient markets hypothesis:

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If the NASDAQ is down and the Dow Jones Industrial Average is higher on a particular day, which of the following is likely to be TRUE?

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Use the following to answer questions : Scenario: Open Economy S = I In an open economy GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion, and imports are $3 trillion. -(Scenario: Open Economy S = I) Look at the scenario Open Economy S = I. How much is national saving?

(Multiple Choice)
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If the interest rate in the market for loanable funds is above the equilibrium rate:

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The supply of loanable funds is _____ sloping because _____ respond to lower interest rates by _____ their quantity supplied of loanable funds.

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Use the following to answer questions : Table: National Income Accounts Use the following to answer questions : Table: National Income Accounts    -(Table: National Income Accounts) Look at the table National Income Accounts. The value of private savings is: -(Table: National Income Accounts) Look at the table National Income Accounts. The value of private savings is:

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If all retail stores announce unexpectedly high sales volumes, holding other things constant, stock prices in the retail sector will:

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When a corporation borrows money from lenders in exchange for a fixed share of the firm's assets and potential profits, the corporation is:

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The price in the loanable funds market is:

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In a closed economy government spending was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $110 billion this year. Investment spending was $10 billion. As a result:

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Use the following to answer question : Figure: The Market for Loanable Funds with Government Borrowing Use the following to answer question : Figure: The Market for Loanable Funds with Government Borrowing   -(Figure: The Market for Loanable Funds with Government Borrowing) Look at the figure The Market for Loanable Funds with Government Borrowing. After an increase in government borrowing, the new equilibrium interest rate will rise from 6% to _____ and the amount of private savings will _____. -(Figure: The Market for Loanable Funds with Government Borrowing) Look at the figure The Market for Loanable Funds with Government Borrowing. After an increase in government borrowing, the new equilibrium interest rate will rise from 6% to _____ and the amount of private savings will _____.

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If a project costs $100,000 and is expected to return $105,000 in a year and if the interest rate is 6%, then the company will want to take out a loan to undertake the project.

(True/False)
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The loanable funds market maximizes:

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A default occurs when:

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