Question 1

The term loanable funds refers to all income that is not used for consumption.

Accepted Answer

A) True 
 B)False

Question 2

The term loanable funds refers to all income that is not used for consumption or government expenditures.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following equations represents GDP for a closed economy?

Accepted Answer

A)  Y = C + I + G + T 
B)  S = I - G 
C)  I = Y - C + G 
D)  Y = C + I + G 
A)  Y = C + I + G + T 
B)  S = I - G 
C)  I = Y - C + G 
D)  Y = C + I + G

Question 4

Crowding out occurs when

Accepted Answer

A)  investment declines because a budget deficit makes interest rates rise. 
B)  investment declines because a budget deficit makes interest rates fall. 
C)  investment increases because a budget surplus makes interest rates rise. 
D)  investment increases because a budget surplus makes interest rates fall. 
A)  investment declines because a budget deficit makes interest rates rise. 
B)  investment declines because a budget deficit makes interest rates fall. 
C)  investment increases because a budget surplus makes interest rates rise. 
D)  investment increases because a budget surplus makes interest rates fall.

Question 5

Figure 26-5. Figure 26-5 shows the loanable funds market for a closed economy.  
-Refer to Figure 26-5. Starting at point A, the enactment of an investment tax credit would likely cause

Accepted Answer

A)  the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% point 
C) . 
B)  the quantity of loanable funds traded to decrease to $75 and the interest rate to fall to 5% point 
B) . 
C)  the quantity of loanable funds traded to decrease to $75 and the interest rate to rise to 7% point 
E) . 
D)  the quantity of loanable funds traded to increase to $125 and the interest rate to fall to 5% point 
D) . 
A)  the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% point 
C) . 
B)  the quantity of loanable funds traded to decrease to $75 and the interest rate to fall to 5% point 
B) . 
C)  the quantity of loanable funds traded to decrease to $75 and the interest rate to rise to 7% point 
E) . 
D)  the quantity of loanable funds traded to increase to $125 and the interest rate to fall to 5% point 
D) .

The term loanable funds refers to all income that is not used for consumption.

The term loanable funds refers to all income that is not used for consumption or government expenditures.

Which of the following equations represents GDP for a closed economy?

Crowding out occurs when

Figure 26-5. Figure 26-5 shows the loanable funds market for a closed economy. -Refer to Figure 26-5. Starting at point A, the enactment of an investment tax credit would likely cause

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 8: Saving, Investment, and the Financial System

The term loanable funds refers to all income that is not used for consumption.

The term loanable funds refers to all income that is not used for consumption or government expenditures.

Which of the following equations represents GDP for a closed economy?

Crowding out occurs when

Figure 26-5. Figure 26-5 shows the loanable funds market for a closed economy. -Refer to Figure 26-5. Starting at point A, the enactment of an investment tax credit would likely cause

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters