111.RefertoFigure26-3.AshiftofthedemandcurvefromD1toD2iscalled a.anincreaseinthedemandforloanablefunds,andthatincreasewouldoriginatefrompeoplewhohadsomeextraincometheywantedtolend. b.anincreaseinthedemandforloanablefunds,andthatincreasewouldoriginatefromhouseholdsandfirmswhowishtoborrowtomakeinvestments. c.adecreaseinthedemandforloanablefunds,andthatdecreasewouldoriginatefrompeoplewhohadsomeextraincometheywantedtolend. d.adecreaseinthedemandforloanablefunds,andthatdecreasewouldoriginatefromhouseholdsandfirmswhowishtoborrowtomakeinvestments. 112.RefertoFigure26-3.Whichofthefollowingmovementsshowstheeffectsofthegovernmentgoingfromabudgetsurplustoabudgetdeficit? a.amovementfromPointAtoPointB b.amovementfromPointBtoPointA c.amovementfromPointAtoPointF d.amovementfromPointBtoPointC 113.RefertoFigure26-3.Whichofthefollowingmovementsshowstheeffectsofhouseholds’decisiontosavemore? a.amovementfromPointAtoPointB b.amovementfromPointFtoPointA c.amovementfromPointCtoPointF d.amovementfromPointBtoPointC 114.RefertoFigure26-3.Whichofthefollowingmovementswouldbeconsistentwiththegovernmentbudgetgoingfromdeficittosurplusandthesimultaneousenactmentofaninvestmenttaxcredit? a.amovementfromPointAtoPointC b.amovementfromPointBtoPointA c.amovementfromPointBtoPointF d.amovementfromPointCtoPointB Figure26-4.Onthehorizontalaxisofthegraph,Lrepresentsthequantityofloanablefundsinbillionsofdollars. 115.RefertoFigure26-4.Whichofthefollowingeventscouldexplainashiftofthedemand-for-loanable-fundscurvefromD1toD2? a.Thetaxcodeisreformedtoencouragegreatersaving. b.Thetaxcodeisreformedtoencouragegreaterinvestment. c.Thegovernmentstartsrunningabudgetdeficit. d.Thegovernmentstartsrunningabudgetsurplus. 116.RefertoFigure26-4.Thepositionand/orslopeoftheSupplycurveareinfluencedby a.thelevelofpublicsaving. b.thelevelofnationalsaving. c.decisionsmadebypeoplewhohaveextraincometheywanttosaveandlendout. d.Alloftheabovearecorrect. 117.RefertoFigure26-4.RegardthepositionoftheSupplycurveasfixed,asonthegraph.Iftherealinterestrateis8percent,theinflationrateis3percent,andthemarketforloanablefundsisinequilibrium,thenthepositionofthedemand-for-loanable-fundscurvemustbe a.D1. b.D2. c.betweenD1andD2. d.to the right ofD2. 118.RefertoFigure26-4.RegardthepositionoftheSupplycurveasfixed,asonthegraph.Iftherealinterestrateis4percent,theinflationrateis2percent,andthemarketforloanablefundsisinequilibrium,thenthepositionofthedemand-for-loanable-fundscurvemustbe a.D1. b.D2. c.betweenD1andD2. d.tothe left ofD1. 119.RefertoFigure26-4.If theequilibrium quantity ofloanable funds is$56 billion andif the rateof inflation is4percent,thentheequilibriumrealinterestrateis a.lowerthan6percent. b.6percent. c.between6percentand8percent. d.higherthan8percent. 120.RefertoFigure26-4.If […]