Exam 10: Economic Growth, the Financial System, and Business Cycles

In 2003,Congress passed a tax cut that included a reduction in the marginal tax rate on stock dividends.This essentially increased the after-tax rate of return on stocks that offer 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.

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

In an open economy,there is interaction with other economies in terms of both trading of goods and services and borrowing and lending.

Which of the following is a correct statement?

Borrowers are ________ of loanable funds,and lenders are ________ of loanable funds.

What is human capital?

There is a government budget surplus if

Explain and show graphically how a decrease in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

If technological change increases the profitability of new investment for firms,then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________.

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

The lengths of the recession and expansion phases and which sectors of the economy are most affected will rarely be the same in any two business cycles.

In a closed economy,public saving plus private saving is equal to

Long-run economic growth requires all of the following except

If Ebenezer Scrooge spends rather than saves his vast wealth,he will

According to Robert Fogel,economic growth ________ health,and health ________ economic growth.

If you spend more of your income on consumption goods,which of the following will occur?

Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that

Potential GDP is estimated to grow at a rate of 3.2% in the United States.Actual GDP in the U.S.

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

Which of the following is not one of the key services provided by the financial system?