Exam 23: Finance, Saving, and Investment

Suppose a firm has an investment project which will cost $200,000 and result in $30,000 profit. The firm will not undertake the project if the interest rate is

A government budget surplus occurs, which ________ loanable funds. The real interest rate ________, household saving ________, and investment ________.

In 2011, Tim's Gyms needs to finance the building of a new gym. Suppose Tim secures this financing from a bank, and the bank receives ownership if Tim fails to make payments. This type of funding is

At the beginning of the year, Tom's Tubes had capital of 5 tube-inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's gross investment for the year is

Figure 23.2.3 Refer to the figure below to answer the following questions. -In Figure 23.2.3, if the real interest rate is constant at 6 percent and expected profit falls, the quantity of loanable funds demanded will be

Table 23.3.1 Data from Northland -Refer to Table 23.3.1. Table 23.3.1 shows the market for loanable funds in Northland. The government budget is balanced. If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium has a real interest rate of ________ percent and quantity of loanable funds traded equal to ________.

If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________.

If China's government increases its budget surplus, there is ________ in the supply of loanable funds, private saving ________ and investment ________.

Technological progress that increases expected profit shifts the demand for loanable funds curve

Table 23.2.2 The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule. 73)Consider Table 23.2.2. What is the equilibrium real interest rate? -Consider Table 23.2.2. What is the equilibrium quantity of saving?

The tendency for private saving to increase in response to growing government deficits is known as the

A decrease in the real interest rate leads to a ________ the demand for loanable funds curve, and a decrease in expected profit leads to a ________ the demand for loanable funds curve.

This year Pizza Hut spent $1.3 billion on new capital in its stores. Depreciation during the year was $300 million. Pizza Hut's gross investment was ________ and its net investment was ________.

In the market for loanable funds, a larger government surplus leads to

Choose the statement that is incorrect about Treasury bonds.

Table 23.3.7 The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced. -Consider Table 23.3.7. If the government's budget becomes a deficit of $1.0 trillion, what is the quantity of investment?

Figure 23.2.5 -Refer to Figure 23.2.5. In Figure 23.2.5, the supply of loanable funds curve is SLF₀ and the demand for loanable funds curve is DLF0. An expansion that increases disposable income and expected profit

The quantity of loanable funds demanded increases when

Figure 23.2.2 -Refer to Figure 23.2.2. In Figure 23.2.2, a decrease in the real interest rate will result in a movement from point E to

Table 23.3.2 -Refer to Table 23.3.2. The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1 trillion at each real interest rate and the quantity of loanable funds supplied increases by $2 trillion at each real interest rate. If the government wants investment to be $9 trillion, it must ________ its budget balance by ________ trillion.