Exam 10: Finance, Saving, and Investment

In 2010, the U.S.federal government budget had a budget deficit.If there is no Ricardo-Barro effect, this deficit ________ the demand for loanable funds and ________ the real interest rate.

Investment banks differ from commercial banks in the fact that

The change in the quantity of capital from one period to the next is equal to

Crowding out can occur when a government budget ________ raises the real interest rate and the equilibrium quantity of investment ________.

To acquire financial capital, a firm can i. obtain a loan from a bank. Ii) issue stock. Iii) issue bonds.

The opportunity cost of the financial resources used to finance the purchase of capital is

The supply of loanable funds is from

The local Allied Moving Company begins this year with capital equal to $250,000.During the year the firm depreciates $150,000 worth of its capital and ends the year with capital equal to $250,000.Which statement correctly summarizes Allied Moving Company's investment?

Bill's Lawn service starts the year with 20 lawn mowers.During the year, 3 mowers break and are not worth fixing.Bill also expands his business and buys 10 more mowers.Bill's capital at the end of the year is ________ mowers.

Which of the following are typically financed in the loan market? i. a mortgage for a house ii. credit card balances iii. the purchase of a share of stock in a corporation.

If the interest rate on student loans _______, students will ________.

As the economy enters an expansion there will be

Does a stock certificate or a bond represent ownership of a company and a claim on its profits?

Bill's Lawn service starts the year with 20 lawn mowers.During the year, 3 mowers break and are not worth fixing.Bill also expands his business and buys 10 more mowers.Bill's gross investment is ________ mowers.

-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. If there is no Ricardo-Barro effect and the government now runs a balanced budget, the

Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?

10.4 Chapter Figures The figure above shows the demand for loanable funds curve. -In the figure above, a movement from point A to point C can be the result of

Suppose a government tax cut increases disposable income.If there is no change in the government deficit or surplus, what effect would this tax cut have on the supply of loanable funds and the demand for loanable funds? What will happen to the real interest rate?

Wealth is to ________ as capital stock is to ________.

The demand for loanable funds curve illustrates