Question 1

A rise in the real interest rate

Accepted Answer

A)  shifts the demand for loanable funds curve rightward. 
B)  shifts the demand for loanable funds curve leftward. 
C)  creates a movement upward along the demand for loanable funds curve. 
D)  creates a movement downward along the demand for loanable funds curve. 
A)  shifts the demand for loanable funds curve rightward. 
B)  shifts the demand for loanable funds curve leftward. 
C)  creates a movement upward along the demand for loanable funds curve. 
D)  creates a movement downward along the demand for loanable funds curve.

Question 2

How does an increase in the expected profit affect investment demand and the demand for loanable funds curve?

Accepted Answer

An increase in the expected profit incre

Question 3

If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be ________ in the supply of loanable funds, private saving ________ and investment ________.

Accepted Answer

A)  an increase; decreases; increases 
B)  a decrease; increases; increases 
C)  an increase; increases; increases 
D)  a decrease; decrease; increases 
A)  an increase; decreases; increases 
B)  a decrease; increases; increases 
C)  an increase; increases; increases 
D)  a decrease; decrease; increases

Question 4

People know that the inflation rate will increase from 3 percent to 5 percent. As a result

Accepted Answer

A)  the nominal interest rate falls by 2 percentage points. 
B)  the nominal interest rate is constant. 
C)  the nominal interest rate rises by 2 percentage points. 
D)  the real interest rate rises by 2 percentage points. 
A)  the nominal interest rate falls by 2 percentage points. 
B)  the nominal interest rate is constant. 
C)  the nominal interest rate rises by 2 percentage points. 
D)  the real interest rate rises by 2 percentage points.

Question 5

In the loanable funds market, the supply comes from

Accepted Answer

A)  saving, the government budget surplus and international borrowing. 
B)  only saving and the government budget surplus. 
C)  only saving. 
D)  only the government budget surplus and international borrowing. 
A)  saving, the government budget surplus and international borrowing. 
B)  only saving and the government budget surplus. 
C)  only saving. 
D)  only the government budget surplus and international borrowing.

A rise in the real interest rate

How does an increase in the expected profit affect investment demand and the demand for loanable funds curve?

If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be in the supply of loanable funds, private saving and investment .

People know that the inflation rate will increase from 3 percent to 5 percent. As a result

In the loanable funds market, the supply comes from

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 7: Finance, Saving, and Investment

A rise in the real interest rate

How does an increase in the expected profit affect investment demand and the demand for loanable funds curve?

If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be ________ in the supply of loanable funds, private saving ________ and investment ________.

People know that the inflation rate will increase from 3 percent to 5 percent. As a result

In the loanable funds market, the supply comes from

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

If China's government runs a budget surplus and there is no Ricardo-Barro effect, there will be in the supply of loanable funds, private saving and investment .