Exam 13: Saving, Investment, and the Financial System

Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices. a."I am in a high federal income tax bracket and I don't want to take very much risk." b."I want a high return and I am willing to take a lot of risk to get it." c."I want a decent return and I have enough deductions that I don't value tax breaks highly."

Which of the following bond buyers did not buy the bond that best met his or her objective?

In the national income accounting identity showing the equality between national saving and investment, what are the algebraic expressions for private saving and public saving?

What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?

A checking deposit functions as

Late in the 2000-2009 decade, real estate prices in the U.S. fell by a greater percentage than they had fallen since the

Net exports must equal zero for any economy

When the government goes from running a balanced budget to running a budget surplus,

Over-the-Rhine Cheese Corporation had a P/E ratio of 20, retained earnings of $1.70 per share and a dividend of $0.80. What was its dividend yield?

Draw and label a graph showing equilibrium in the market for loanable funds.

Which of the following statements is correct?

If Congress instituted an investment tax credit

Norberto is opening a bicycle shop, and his monthly expenditures to get the shop up and running exceed his monthly income. Norberto is best described as a

An increase in the budget deficit would cause a

The country of Bienmundo does not trade with any other country. Its GDP is $30 billion. Its government purchases $5 billion worth of goods and services each year, collects $7 billion in taxes, and provides $3 billion in transfer payments to households. Private saving in Bienmundo amounts to $5 billion. What are consumption and investment in Bienmundo?

Which of the following would not be a result of replacing the income tax with a consumption tax so that interest income was no longer taxed?

Nastech Pharmaceuticals announced it has developed a nasal spray that would reduce hunger cravings. Other things the same we would expect

Scenario 13-1. Assume the following information for an imaginary, closed economy. GDP =\ 120,000; consumption =\ 70,000; private savng =\ 9,000 ; national saving =\ 12,000 -Refer to Scenario 13-1. This economy's government is running a

In a small closed economy investment is $50 billion and private saving is $55 billion. What are public saving and national saving?

Table 13-1 Stack Sym Yld \% P/E Val 100s Hi Lo Clase Net Che. GenMills GIS 2.5 35 13758 44.3 43.5 43.97 -0.63 Gillette G 2.2 31 30428 31.1 29.7 30 0.17 Graca GGG 1.2 16 705 24.2 23.1 23.95 -0.53 Hershey HSY 2.1 38 5418 63.4 61.7 62.45 0.72 -Refer to Table 13-1. In dollar terms, which company paid the highest dividend per share?