MACRO Test #1- Part 4
Kathleen is considering expanding her dress shop. If interest rates rise she is
less likely to expand. This illustrates why the demand for loanable funds slopes downward.
GDP = $120,000; consumption = $70,000; private saving = $9,000; national saving = $12,000 Refer to Scenario 1. For this economy, investment amounts to
12,000
GDP = $120,000; consumption = $70,000; private saving = $9,000; national saving = $12,000 Refer to Scenario 1. For this economy, government purchases amount to
38,000
GDP = $120,000; consumption = $70,000; private saving = $9,000; national saving = $12,000 Refer to Scenario 1. For this economy, taxes amount to
41,000
If the inflation rate is 2 percent and the real interest rate is 3 percent, then the nominal interest rate is
5%
What would happen in the market for loanable funds if the government were to increase the tax on interest income?
Interest would rise
Which of the following is a financial intermediary?
Mutual fund
In a closed economy, GDP is equal to 11,000, taxes are equal to 1,500, consumption equals 7,500, and government purchases equal 2,000. What is national saving?
None of the above is correct-----
GDP = $120,000; consumption = $70,000; private saving = $9,000; national saving = $12,000 Refer to Scenario 1. This economy's government is running a
Surplus 3,000
Which of the following lists correctly identifies the four expenditure categories of GDP?
consumption, government purchases, investment, net exports
The primary function of the financial system is to
match one person's saving with another person's investment
Demand moves
means investment
Supply moves
means savings
In a closed economy, T = $5,000, S = $11,000, C = $50,000, and the government is running a budget deficit of $1,000. Then
private saving = $12,000 and GDP = $67,000
If Congress instituted an investment tax credit, the interest rate would
rise and savings fall
A larger budget deficit
rise interest, reduces investment
The supply of loanable funds would shift to the right if either
tax reforms encouraged greater saving or the budget deficit became smaller.