141.Kroger’sgrocerychainwantstofinancethepurchaseofanewwarehouse.Itdecidestosellbonds.
a.Kroger’splanstouseequityfinancinganditsactionispartofthedemandforloanablefunds.
b.Kroger’splanstouseequityfinancinganditsactionispartofthesupplyofloanablefunds.
c.Kroger’splanstousedebtfinancinganditsactionispartofthedemandforloanablefunds.
d.Kroger’splanstousedebtfinancinganditsactionispartofthesupplyofloanablefunds.
142.Ifthedemandforloanablefundsshiftstotheright,theninitiallythereisa
a.surplussotheinterestratewillfall.
b.surplussotheinterestratewillrise.
c.shortagesotheinterestratewillfall.
d.shortagesotheinterestratewillrise.
143.Ifthesupplyofanddemandforloanablefundsbothshiftleft,whichofthefollowingnecessarilyhappens?
a.theequilibriuminterestratefalls
b.theequilibriuminterestraterises
c.theequilibriumquantityofloanablefundsrises
d.theequilibriumquantityofloanablefundsfalls
144.Ifthereisashortageinthemarketforloanablefunds,whathappenstodesiredsavinganddesiredinvestmentastheinterestratemovestoitsequilibriumvalue?
a.desiredsavinganddesiredinvestmentbothfall
b.desiredsavinganddesiredinvestmentbothrise
c.desiredsavingfallsanddesiredinvestmentrises
d.desiredsavingrisesanddesiredinvestmentfalls
145.Otherthingsthesame,theeffectsofanincreaseintransferpaymentsonthegovernment’sbudgetdeficitwillleadto
a.greaterinvestment.
b.ahigherinterestrate.
c.higherpublicsaving.
d.Alloftheabovearecorrect.
146.Otherthingsthesame,ifthegovernmentdecreasestransferpayments,then
a.boththeinterestrateandtheequilibriumquantityofloanablefundsfall.
b.boththeinterestrateandtheequilibriumquantityofloanablefundsrise.
c.theinterestraterisesandtheequilibriumquantityofloanablefundsfalls.
d.theinterestratefallsandtheequilibriumquantityofloanablefundsrises.
147.Supposeacountryhasalargerincreaseindebtin2014thanithadin2013.Thenotherthingsthesame,
a.thesupplyofloanablefundsshiftsrightwardandtheinterestratefalls.
b.thesupplyofloanablefundsshiftsleftwardandtheinterestraterises.
c.thedemandforloanablefundsshiftsleftwardandtheinterestratefalls.
d.thedemandforloanablefundsshiftsrightwardandtheinterestraterises.
148.Whichofthefollowingwouldshiftthedemandforloanablefundstotheright?
a.incometaxincreases
b.governmentexpendituresincrease
c.theinterestratefalls
d.Congressandthepresidentpassaninvestmenttaxcredit
149.Anincreaseinthequantityofloanablefundstradedmeansthat
a.firmsareborrowinglessandinvestmentdecreases.
b.firmsareborrowinglessandinvestmentincreases.
c.firmsareborrowingmoreandinvestmentincreases.
d.firmsareborrowingmoreandinvestmentdecreases.
Figure26-5.Figure26-5showstheloanablefundsmarketforaclosedeconomy.
150.RefertoFigure26-5.StartingatpointA,theenactmentofaninvestmenttaxcreditwouldlikelycause
a.thequantityofloanablefundstradedtoincreaseto$125andtheinterestratetoriseto7%(pointC).
b.thequantityofloanablefundstradedtodecreaseto$75andtheinterestratetofallto5%(pointB).
c.thequantityofloanablefundstradedtodecreaseto$75andtheinterestratetoriseto7%(pointE).
d.thequantityofloanablefundstradedtoincreaseto$125andtheinterestratetofallto5%(pointD).
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