Filters
Question type

In the national income accounting identity showing the equality between national saving and investment,what are the algebraic expressions for private saving and public saving?

Correct Answer

verifed

verified

Private saving is Y ...

View Answer

The financial system is important because it helps to match one person’s _____ with another person’s _____.

Correct Answer

verifed

verified

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 _____.

Correct Answer

verifed

verified

falls, inc...

View Answer

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

Correct Answer

verifed

verified

The real i...

View Answer

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

Correct Answer

verifed

verified

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

Correct Answer

verifed

verified

decrease, ...

View Answer

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?

Correct Answer

verifed

verified

The supply of loanab...

View Answer

A restaurant chain announces declining revenues. What’s the name of the type of risk that this news raises for holders of this chain’s bonds? What does this news to do the interest rate on this chain’s bonds?

Correct Answer

verifed

verified

default ri...

View Answer

What is a bond buyer promised when she buys a bond?

Correct Answer

verifed

verified

List three characteristics of a bond that would make its interest rate higher than otherwise.

Correct Answer

verifed

verified

it has a longer term to maturi...

View Answer

A _____ does not engage in international trade in goods and services and it does not engage in international borrowing and lending.

Correct Answer

verifed

verified

In a closed economy private saving is $500 billion and the government budget deficit is $100 billion.What is investment?

Correct Answer

verifed

verified

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.

Correct Answer

verifed

verified

demand, ri...

View Answer

A _____ is a certificate of indebtedness and a _____ is a claim to partial ownership in a firm.

Correct Answer

verifed

verified

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?

Correct Answer

verifed

verified

A reduction in transfer paymen...

View Answer

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?

Correct Answer

verifed

verified

There is a...

View Answer

What is the main function of the financial system?

Correct Answer

verifed

verified

Matching s...

View Answer

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

Correct Answer

verifed

verified

national saving/inve...

View Answer

What are the basic differences between bonds and stocks?

Correct Answer

verifed

verified

A bond is a certificate of indebtedness ...

View Answer

_____ and _____ are the two most important financial intermediaries.

Correct Answer

verifed

verified

Banks, Mut...

View Answer

Showing 21 - 40 of 57

Related Exams

Show Answer