Question 1

An increase in the government budget deficit causes national saving to _____, the interest rate to _____, and investment to _____.

Accepted Answer

The answer of An increase in the government budget deficit...

Question 2

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 quantity...

Question 3

Which government policy raises the interest rate and raises investment spending?

Accepted Answer

The answer of Which government policy raises the interest rate...

Question 4

When the government increases its borrowing, the budget _____ increases and government debt _____. The resulting change in investment due to this increased government borrowing is called _____.

Accepted Answer

The answer of When the government increases its borrowing, the...

Question 5

Congress and the President allow people to make greater contributions to tax-deferred savings accounts. Which curve in the market for loanable funds would shift, which direction would it shift, what would happen to the interest rate, and what would happen to investment spending?

Accepted Answer

The answer of Congress and the President allow people to...

Question 6

If consumers reduced their spending, what would happen to the interest rate and investment?

Accepted Answer

The answer of If consumers reduced their spending, what would...

Question 7

When the government increases spending holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____.

Accepted Answer

The answer of When the government increases spending holding taxes...

Quiz 18: Saving, Investment, and the Financial System

An increase in the government budget deficit causes national saving to ___, the interest rate to _, and investment to ___.

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

Which government policy raises the interest rate and raises investment spending?

When the government increases its borrowing, the budget ___ increases and government debt _. The resulting change in investment due to this increased government borrowing is called ___.

Congress and the President allow people to make greater contributions to tax-deferred savings accounts. Which curve in the market for loanable funds would shift, which direction would it shift, what would happen to the interest rate, and what would happen to investment spending?

If consumers reduced their spending, what would happen to the interest rate and investment?

When the government increases spending holding taxes constant), the budget balance ___. This causes the interest rate in the market for loanable funds to _ and investment to ___.