Exam 10: Finance, Saving, and Investment

If expected future disposable income increases, then

Which of the following factors changes saving supply and hence shifts the supply of loanable funds curve? i. disposable income ii. wealth iii. expected profit

Other things remaining the same, as the real interest rate increases

Evidence to support the Ricardo-Barro effect would show that

If there is no Ricardo-Barro effect, an increase in the budget deficit

The Ricardo-Barro effect refers to how ________ in response to a government budget ________.

Which of the following is NOT an example of physical capital?

At the beginning of the year, Becky's wealth was $30,000.During the year, she earned $50,000 of income, paid $6,000 in taxes and consumed $43,000 of goods and services.What is Becky's wealth at the end of the year?

-In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve.The equilibrium interest rate is ________ percent and the equilibrium quantity of loanable funds is ________.

During financial crisis of 2008-09, the government rescued financial firms and the auto industry. As a result,

An increase in disposable income leads to a

A country initially has an equilibrium real interest rate of 4 percent and an equilibrium quantity of investment of $2 trillion.The government's budget deficit then increases.According to the crowding-out effect, the

Economists use the term wealth to mean

Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the expected profit increases.As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________.

"A shortage in the loanable funds market occurs when the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded." Explain why this statement is correct or incorrect.

Intel's capital at the end of the year equals Intel's capital at the beginning of the year

For a government to add to the supply of loanable funds, it must

The figure above shows the supply of loanable funds curve. -In the figure above, a movement from point A to point C can be the result of

"When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases." Is the previous statement correct or incorrect? Explain your answer.

Financial capital is used to help finance