A) is the total income in the economy that remains after paying for consumption. B) is the total income in the economy that remains after paying for consumption and government purchases. C) is always greater than investment for a closed economy. D) is equal to private saving minus public saving. A) is the total income in the economy that remains after paying for consumption. B) is the total income in the economy that remains after paying for consumption and government purchases. C) is always greater than investment for a closed economy. D) is equal to private saving minus public saving.

Assuming the market for loanable funds is in equilibrium, use the following numbers to determine the quantity of loanable funds supplied. \[\begin{array} { | l | c | } \hline \text { GDP } & \$ 8.7 \text { trillion } \\ \hline \text { Consumption Spending } & \$ 3.2 \text { trillion } \\ \hline \text { Taxes Net of Transfers } & \$ 2.7 \text { trillion } \\ \hline \text { Government Purchases } & \$ 3.0 \text { trillion } \\ \hline \end{array}\]

A) $2.2 trillion B) $2.5 trillion C) $3.9 trillion D) $5.2 trillion A) $2.2 trillion B) $2.5 trillion C) $3.9 trillion D) $5.2 trillion

Exam 13: Saving, Investment, and the Financial System

In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to private and national saving?

(Multiple Choice)

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Question 141

The slope of the supply of loanable funds is based on the logic that an increase in interest rates

(Multiple Choice)

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Question 142

The single most important piece of information about a stock is its

(Multiple Choice)

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Question 143

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

(Multiple Choice)

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Question 144

Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government's budget cause

(Multiple Choice)

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Question 145

A government may use deficit financing to smooth tax rates over time.

(True/False)

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Question 146

Which of the following is not a nonsensical headline?

(Multiple Choice)

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Question 147

What do we call financial institutions through which savers can indirectly provide funds to borrowers?

(Multiple Choice)

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Question 148

Institutions that help to match one person's saving with another person's investment are collectively called the

(Multiple Choice)

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Question 149

Suppose the economy is closed with national saving of $2 trillion, consumption of $8 trillion, and government purchases of $1 trillion. What is GDP?

(Multiple Choice)

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Question 150

National saving

(Multiple Choice)

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Question 151

The economy's two most important financial markets are

(Multiple Choice)

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Question 152

Which of the following could explain a decrease in the equilibrium interest rate and an increase in the equilibrium quantity of loanable funds?

(Multiple Choice)

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Question 153

Credit risk refers to the probability that the issuer of a bond will fail to pay some or all of the interest or principal.

(True/False)

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Question 154

The sale of either stocks or bonds to raise money is known as equity finance.

(True/False)

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Question 155

The identity that shows that total income and total expenditure are equal is

(Multiple Choice)

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Question 156

Assuming the market for loanable funds is in equilibrium, use the following numbers to determine the quantity of loanable funds supplied. GDP \ 8.7 trillion Consumption Spending \ 3.2 trillion Taxes Net of Transfers \ 2.7 trillion Government Purchases \ 3.0 trillion

(Multiple Choice)

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Question 157

If in a closed economy Y = $11 trillion, which of the following combinations would be consistent with national saving of $2.5 trillion?

(Multiple Choice)

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Question 158

Identify each of the following acts as representing either saving or investment. a.Fred uses some of his income to buy government bonds. b.Julie takes some of her income and buys mutual funds. c.Alex purchases a new truck for his delivery business using borrowed funds. d.Elaine uses some of her income to buy stock in a major corporation. e.Henrietta hires a builder to construct a new building for her bicycle shop.

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Question 159

Scenario 13-3. Assume the following information for an imaginary, open economy. Consumption = $1,000; investment = $300; net exports = $100; taxes = $230; private saving = $200; and national saving = $150. -Refer to Scenario 13-3. For this economy, GDP equals

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Question 160

Showing 141 - 160 of 473

Exam 13: Saving, Investment, and the Financial System

In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to private and national saving?

The slope of the supply of loanable funds is based on the logic that an increase in interest rates

The single most important piece of information about a stock is its

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

Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government's budget cause

A government may use deficit financing to smooth tax rates over time.

Which of the following is not a nonsensical headline?

What do we call financial institutions through which savers can indirectly provide funds to borrowers?

Institutions that help to match one person's saving with another person's investment are collectively called the

Suppose the economy is closed with national saving of $2 trillion, consumption of $8 trillion, and government purchases of $1 trillion. What is GDP?

National saving

The economy's two most important financial markets are

Which of the following could explain a decrease in the equilibrium interest rate and an increase in the equilibrium quantity of loanable funds?

Credit risk refers to the probability that the issuer of a bond will fail to pay some or all of the interest or principal.

The sale of either stocks or bonds to raise money is known as equity finance.

The identity that shows that total income and total expenditure are equal is

Assuming the market for loanable funds is in equilibrium, use the following numbers to determine the quantity of loanable funds supplied. GDP \ 8.7 trillion Consumption Spending \ 3.2 trillion Taxes Net of Transfers \ 2.7 trillion Government Purchases \ 3.0 trillion

If in a closed economy Y = $11 trillion, which of the following combinations would be consistent with national saving of $2.5 trillion?

Scenario 13-3. Assume the following information for an imaginary, open economy. Consumption = $1,000; investment = $300; net exports = $100; taxes = $230; private saving = $200; and national saving = $150. -Refer to Scenario 13-3. For this economy, GDP equals

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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