Question :
41) The supply of loanable funds from
A) households and : 1227785
41) The supply of loanable funds is from
A) households and the government if it has a budget surplus.
B) households and the government if it has a budget deficit.
C) firms and the government if it has a budget surplus.
D) firms and the government if it has a budget deficit.
E) households and firms.
42) The quantity of loanable funds supplied increases if the real interest rate rises, all other things remaining the same, because the
A) real interest rate is the opportunity cost of saving.
B) real interest rate is the opportunity cost of consumption.
C) cost of living is determined by the real interest rate.
D) real interest rate is inversely related to the cost of buying on credit.
E) demand for investment increases when the real interest rate rises.
43) The real interest rate is ________ related to the supply of loanable funds because ________.
A) positively; the opportunity cost of consumption expenditure increases as the real interest rate rises
B) negatively; the opportunity cost of consumption expenditure increases as the real interest rate rises
C) positively; people are motivated to increase their consumption expenditure as the real interest rate rises
D) negatively; people are motivated to save more as the real interest rate rises
E) None of the above answers are correct.
44) If the real interest rate falls, people decide to ________ because the opportunity cost of ________.
A) increase their consumption expenditure; saving has decreased
B) increase their consumption expenditure; consumption has decreased
C) decrease their consumption expenditure; consumption has decreased
D) save more; saving has decreased
E) None of the above answers are correct.
45) If the interest rate on student loans ________, students will ________.
A) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
C) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
D) falls from 6 percent to 1 percent; not change their saving but will change their investment
E) None of the above answers are correct.
46) The supply of loanable funds schedule shows that the
A) higher the real interest rate, the greater the quantity of loanable funds supplied.
B) higher the real interest rate, the greater the opportunity cost of supplying loanable funds.
C) higher the real interest rate, the lower the opportunity cost of supplying loanable funds.
D) lower the real interest rate, the greater the quantity of loanable funds supplied.
E) higher the real interest rate, the more the supply of loanable funds curve shifts rightward.
47) An increase in the real interest rate
A) has no effect on the loanable funds.
B) increases the quantity of loanable funds supplied.
C) increases current consumption.
D) decreases the quantity of loanable funds supplied.
E) shifts the supply of loanable funds curve rightward.
48) As the real interest rate rises, the quantity of loanable funds supplied ________ and the quantity of loanable funds demanded ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; does not change
49) A decrease in people’s disposable income
A) increases saving.
B) increases consumption.
C) decreases saving.
D) increases saving and decrease consumption.
E) increases investment demand.
50) As the economy enters an expansion so that people’s expected future incomes rise, there will be
A) an increase in the supply of loanable funds.
B) a leftward shift in the supply of loanable funds curve.
C) a decrease in the nominal interest rate.
D) a leftward shift in the demand for loanable funds curve.
E) None of the above answers are correct.
