Homework Answers
Q.10. Option 4. It is the sum of private and public saving
Q.9. Option 4. As the cost of lending is less with lesser expected inflation
Option 2. With the technological developments the supply curve shifts to right
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JOY Question 10 (1 point) National saving is composed of: O private saving and government spending....
S3 S1 S2 real interest rate D1 D2 Loanable funds Refer to the figure above. If...
S3 S1 S2 real interest rate D1 D2 Loanable funds Refer to the figure above. If the economy starts at point o, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: im
1. Which of the following is true regarding spending and saving? a. Money that is spent...
1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...
Question 2 (1 point) In an open economy suppose that GDP is $12 trillion. Consumption is...
Question 2 (1 point) In an open economy suppose that GDP is $12 trillion. Consumption is $8 trillion and government spending is $2 trillion, Taxes are $0.5 trillion. Exports are $1 trillion and imports are $3 trillion. What is private saving? $4 trillion $3.5 trillion $2.5 trillion $1.5 trillion Question 1 (1 point) Interest rate (%) Supply of loanable funds Demand for loanable funds 0 10 20 30 40 50 60 70 80 90 100 Quantity of loanable funds (billions...
Question 8 (1 point) A rise in government spending shifts the IS curve because it_ national...
Question 8 (1 point) A rise in government spending shifts the IS curve because it_ national saving the interest rate for any given level of for any given level of income, and this income. 1) reduces; reduction lowers 2) reduces; reduction raises 3) increases; increase raises 4) increases; increase lowers
Question 7 (1 point) S3 S1 S2 3 0 5 1 D1 D2 Loanable funds real...
Question 7 (1 point) S3 S1 S2 3 0 5 1 D1 D2 Loanable funds real interest rate 12 Refer to the figure above. In the 2000 elections George Bush made a proposal to give away the budget surpluses in lower taxes. If the economy started at point 0, then the effect of such a policy would be: to move the economy to point 2 to move the economy to point 4 nothing, the economy would stay at point 0...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households to consume today; (iii) corporate taxes; (iv) expected future profits; and (v) the government's budget deficit will cause effects shown in the following graphs respectively. SS SS a. b. A) b, a, b, c, and a B) c, a, d, c, and a C) b, a, d, d, and a D) b, a, d, c, and a Question 14 (Ch21&22) What kind of situations...
Question 22 (1 point) The monetary aggregate M1 refers to: O O all outstanding notes and...
Question 22 (1 point) The monetary aggregate M1 refers to: O O all outstanding notes and coin. notes and coin in circulation. notes and coin in circulation + demand deposits. notes and coin in circulation + demand deposits + travelers checks. Save Question 23 (1 point) The primary instrument for controlling money supply: is credit and interest rate ceilings. is open market operations. is the discount rate. is the reserve requirement. Save Question 24 (1 point) Refer to the table...
Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for...
Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for 2015 will fall to 7%, which is substantially below China's recent annual growth rates, including that for 2014 (Wall Street Journal, March 5, 2015). Over the past several decades, China has invested heavily in capital, increasing its capital stock. However, its economic system provides entrepreneurs little incentive to work to develop new technologies. What is the effect of the Chinese government doubling its spending...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo Figure 1 gabond to non ll "10 non hann o LIRANJ Real Interest Rates (%) Enter • "A" if arrow A represents the • "B" if arrow B represents the Aggregate Output ($) • "N" if the impact of the development mentioned is not represented in the diagram. 10. Adoption of a large debt-financed government infrastructure investment program. 11. Onset of a serious recession...
How do the national income accounts change if social security payments increase? A) Consumption falls. B)...
How do the national income accounts change if social security payments increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if unemployment benefits paid to people increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if national defense spending increases? A) Government...
S3 S1 S2 real interest rate D1 D2 Loanable funds Refer to the figure above. If the economy starts at point o, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: im
Question 2 (1 point) In an open economy suppose that GDP is $12 trillion. Consumption is $8 trillion and government spending is $2 trillion, Taxes are $0.5 trillion. Exports are $1 trillion and imports are $3 trillion. What is private saving? $4 trillion $3.5 trillion $2.5 trillion $1.5 trillion Question 1 (1 point) Interest rate (%) Supply of loanable funds Demand for loanable funds 0 10 20 30 40 50 60 70 80 90 100 Quantity of loanable funds (billions...
Question 8 (1 point) A rise in government spending shifts the IS curve because it_ national saving the interest rate for any given level of for any given level of income, and this income. 1) reduces; reduction lowers 2) reduces; reduction raises 3) increases; increase raises 4) increases; increase lowers
Question 7 (1 point) S3 S1 S2 3 0 5 1 D1 D2 Loanable funds real interest rate 12 Refer to the figure above. In the 2000 elections George Bush made a proposal to give away the budget surpluses in lower taxes. If the economy started at point 0, then the effect of such a policy would be: to move the economy to point 2 to move the economy to point 4 nothing, the economy would stay at point 0...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households to consume today; (iii) corporate taxes; (iv) expected future profits; and (v) the government's budget deficit will cause effects shown in the following graphs respectively. SS SS a. b. A) b, a, b, c, and a B) c, a, d, c, and a C) b, a, d, d, and a D) b, a, d, c, and a Question 14 (Ch21&22) What kind of situations...
Question 22 (1 point) The monetary aggregate M1 refers to: O O all outstanding notes and coin. notes and coin in circulation. notes and coin in circulation + demand deposits. notes and coin in circulation + demand deposits + travelers checks. Save Question 23 (1 point) The primary instrument for controlling money supply: is credit and interest rate ceilings. is open market operations. is the discount rate. is the reserve requirement. Save Question 24 (1 point) Refer to the table...
Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for 2015 will fall to 7%, which is substantially below China's recent annual growth rates, including that for 2014 (Wall Street Journal, March 5, 2015). Over the past several decades, China has invested heavily in capital, increasing its capital stock. However, its economic system provides entrepreneurs little incentive to work to develop new technologies. What is the effect of the Chinese government doubling its spending...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo Figure 1 gabond to non ll "10 non hann o LIRANJ Real Interest Rates (%) Enter • "A" if arrow A represents the • "B" if arrow B represents the Aggregate Output ($) • "N" if the impact of the development mentioned is not represented in the diagram. 10. Adoption of a large debt-financed government infrastructure investment program. 11. Onset of a serious recession...
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