Exam 7: Finance, Saving, and Investment

As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?

In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's net investment totaled

-In the above figure, new expectations of booming business conditions and a higher expected profit will

Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources.

In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's gross investment totaled

What is the influence of the expected profit and the real interest rate on the amount of investment firms make?

People know that the inflation rate will decrease from 7 percent to 3 percent. As a result

The nominal interest rate is approximately equal to the real interest rate minus the inflation rate.

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF?. What happens if real wealth decreases?

In the absence of the Ricardo-Barro effect, an increase in the government deficit results in a ________ real interest rate and a ________ equilibrium quantity of investment.

Which of the following are major influences on the expected profit from an investment? I.technology advances II.stock market behavior III.accounting practices

In 2007, the interest rate banks in France charge each other for loans was 4.86 percent. The inflation rate in France in 2007 was 2.8 percent. The real interest rate in France is

All of the following are points of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 EXCEPT

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

-In the loanable funds market, as the interest rate rises the ________ and the ________.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

In 2008, Germany had a budget deficit of 37 billion euros. This deficit resulted in

-In the above figure, if the real interest rate is 4 percent, then there

In 2007, Singapore's government ran a budget surplus of $4.5 billion. The budget surplus ________ loanable funds and ________ the real interest rate.

-In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF?. What happens if the real interest rate rises?