Question 1

When tax code changes increase saving incentives, the interest rate will _____ and investment will _____.

Accepted Answer

The answer of When tax code changes increase saving incentives,...

Question 2

If the government budget deficit increases,which curve in the market for loanable funds shifts,which direction does it shift,and what happens to the interest rate?

Accepted Answer

The answer of If the government budget deficit increases,which curve...

Question 3

Suppose there is a shortage in the market for loanable funds.Is the interest rate above or below its equilibrium level? How do desired saving and desired investment at this interest rate compare?

Accepted Answer

The answer of Suppose there is a shortage in the...

Question 4

A higher interest rate makes_________ less attractive.Therefore the quantity of loanable funds demanded decreases.

Accepted Answer

The answer of A higher interest rate makes_________ less attractive.Therefore...

Question 5

In a closed economy, Y - C - G equals _____. The variable Y is _____, C is _____, and G is _____.

Accepted Answer

The answer of In a closed economy, Y - C...

Question 6

What happens to desired investment spending if the interest rate rises? Is this response relevant to the supply of loanable funds curve or the demand for loanable funds curve?

Accepted Answer

The answer of What happens to desired investment spending if...

Question 7

The interest rate will _____ and the quantity of loanable funds invested will _____ when the government decreases the budget deficit.

Accepted Answer

The answer of The interest rate will _____ and the...

Question 8

If at some interest rate desired investment is $400 billion,desired private saving is $600 billion,and the budget deficit is $300 billion,is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

Accepted Answer

The answer of If at some interest rate desired investment...

Question 9

What variable adjusts to balance demand and supply in the market for loanable funds?

Accepted Answer

The answer of What variable adjusts to balance demand and...

Question 10

In macroeconomics, _____ refers to the purchase of new capital.

Accepted Answer

The answer of In macroeconomics, _____ refers to the purchase...

Question 11

The income that households have left after paying their taxes and paying for their consumption is known as_______.

Accepted Answer

The answer of The income that households have left after...

Question 12

When tax code changes increase investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment.

Accepted Answer

The answer of When tax code changes increase investment incentives,...

Question 13

What is the source of the supply of loanable funds?

Accepted Answer

The answer of What is the source of the supply...

Question 14

Congress and the President implement an investment tax credit.Which curve in the market for loanable funds shifts,which direction does it shift,and what happens to the interest rate?

Accepted Answer

The answer of Congress and the President implement an investment...

Question 15

When tax code changes reduce saving incentives, the interest rate will _____ and investment will _____.

Accepted Answer

The answer of When tax code changes reduce saving incentives,...

Question 16

If the government reduces transfer payments,what happens to the budget deficit? What curve does this change in the market for loanable funds,which direction does it shift,and what happens to the equilibrium interest rate?

Accepted Answer

The answer of If the government reduces transfer payments,what happens...

Question 17

Public saving is the difference between _____ and _____.

Accepted Answer

The answer of Public saving is the difference between _____...

Question 18

A higher interest rate makes _____ more attractive. Therefore the quantity of loanable funds supplied increases.

Accepted Answer

The answer of A higher interest rate makes _____ more...

Question 19

Woody wants to open a pet store and needs to buy a building.Both the nominal interest rate and the inflation rate increase by 2 percent.Now,Woody

Accepted Answer

If both the nominal interest rate and the inflation rate increase by the same amount, the real interest rate remains unchanged, so Woody's decision is not affected by these changes.

Question 20

When tax code changes reduce investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment.

Accepted Answer

The answer of When tax code changes reduce investment incentives,...

Quiz 13: Saving Investment and the Financial System: The Market for Loanable Funds

When tax code changes increase saving incentives, the interest rate will _ and investment will _.

If the government budget deficit increases,which curve in the market for loanable funds shifts,which direction does it shift,and what happens to the interest rate?

Suppose there is a shortage in the market for loanable funds.Is the interest rate above or below its equilibrium level? How do desired saving and desired investment at this interest rate compare?

A higher interest rate makes_________ less attractive.Therefore the quantity of loanable funds demanded decreases.

In a closed economy, Y - C - G equals ___. The variable Y is _, C is _, and G is ___.

What happens to desired investment spending if the interest rate rises? Is this response relevant to the supply of loanable funds curve or the demand for loanable funds curve?

The interest rate will _ and the quantity of loanable funds invested will _ when the government decreases the budget deficit.

If at some interest rate desired investment is $400 billion,desired private saving is $600 billion,and the budget deficit is $300 billion,is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

What variable adjusts to balance demand and supply in the market for loanable funds?

In macroeconomics, _____ refers to the purchase of new capital.

The income that households have left after paying their taxes and paying for their consumption is known as_______.

When tax code changes increase investment incentives, the ___ for loanable funds curve shifts to the _. This results in a(n) _ in the interest rate and a(n) ___ in investment.

What is the source of the supply of loanable funds?

Congress and the President implement an investment tax credit.Which curve in the market for loanable funds shifts,which direction does it shift,and what happens to the interest rate?

When tax code changes reduce saving incentives, the interest rate will _ and investment will _.

If the government reduces transfer payments,what happens to the budget deficit? What curve does this change in the market for loanable funds,which direction does it shift,and what happens to the equilibrium interest rate?

Public saving is the difference between _ and _.

A higher interest rate makes _____ more attractive. Therefore the quantity of loanable funds supplied increases.

Woody wants to open a pet store and needs to buy a building.Both the nominal interest rate and the inflation rate increase by 2 percent.Now,Woody

When tax code changes reduce investment incentives, the ___ for loanable funds curve shifts to the _. This results in a(n) _ in the interest rate and a(n) ___ in investment.