Question : 21) If government purchases $400 million, taxes $700 million, and : 1244746

 

 

21) If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?

A) Public saving is $500 million.

B) The budget deficit is $100 million.

C) The budget deficit is $500 million.

D) Public saving is $100 million.

 

22) Which of the following will increase investment spending in the economy, holding everything else constant?

A) an increase in the federal government surplus

B) an increase in the budget deficit

C) an increase in consumer dissavings

D) an increase in transfer payments

23) Borrowers are ________ of loanable funds, and lenders are ________ of loanable funds.

A) demanders; suppliers

B) suppliers; demanders

C) suppliers; suppliers

D) demanders; demanders

 

24) The demand for loanable funds is downward sloping because the ________ the interest rate, the ________ the number of profitable investment projects a firm can undertake, and the ________ the quantity demanded of loanable funds.

A) lower; greater; greater

B) lower; smaller; greater

C) greater; greater; greater

D) greater; smaller; greater

 

25) If Ebenezer Scrooge spends rather than saves his vast wealth he will

A) slow economic growth because he is reducing the amount of funds available for investment.

B) slow economic growth because he is increasing the amount of funds available for investment.

C) promote economic growth because he is increasing the amount of funds available for investment.

D) promote economic growth because he is decreasing the amount of funds available for investment.

 

26) A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy.

A) increase; decrease

B) increase; increase

C) decrease; increase

D) decrease; decrease

 

27) If consumers decide to be more frugal and save more out of their income, then this will cause

A) a shift in the supply curve for loanable funds to the right.

B) a shift in the supply curve for loanable funds to the left.

C) a movement to the right along the supply curve for loanable funds.

D) a movement to the left along the supply curve for loanable funds.

 

28) An increase in the demand for loanable funds will occur if there is

A) an increase in the real interest rate.

B) a decrease in the real interest rate.

C) an increase in expected profits from firm investment projects.

D) an increase in the nominal interest rate accompanied by an equal increase in inflation.

 

29) Which of the following would you expect to increase the equilibrium interest rate?

A) an increase in the percentage of income after net taxes that households save

B) an increase in the budget deficit

C) a decrease in the profitability of investment projects firms are considering

D) a change from an income tax to a consumption tax

Figure 14-1

 

30) Refer to Figure 14-1. Which of the following is consistent with the graph depicted above?

A) An expected recession decreases the profitability of new investment.

B) Technological change increases the profitability of new investment.

C) The government runs a budget surplus.

D) Households become spendthrifts and begin to save less.

 

Figure 14-2

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more