Answer:- Option number 3
Reason:- Increase in the supply of savings means the increase in
savings. Increase in saving means decrease in the money supply in
the economy. Hence, because of this interest rates will fall. And
with the fall in interest rates, the people would start
substituting their savings with their expenditures. Hence, the
borrowings would also decrease.
52 Question 52 of 60 > As a result of an increase in the supply of...
49
Question 49 of 60 > The supply curve for savings indicates that the higher the interest rate, the: O smaller the saver's income. O larger the quantity saved. O smaller the quantity saved. O larger the saver's income.
59
Question 59 of 60 > Stocks are better than bonds: O because stocks have guaranteed returns. O in the long run. O in the short run. O because bonds are issued only by companies in financial distress.
As a result of government borrowing to cover deficits, citizens increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes. Then it follows that increased government borrowing will O reduce private investment. increase private investment Ohave no effect of private investment. O increase interest rates. O both (a) and (d) Government borrowing will: O postpone taxation to the future. increase government interest cost. both (a) and (b) O eliminate taxes. The largest portion...
34.
Question 34 of 60 > The difference between nominal GDP and real GDP is that nominal GDP: O measures a country's production of finished goods and services at fixed prices, whereas real GDP measures a country's production of all finished goods and services at current market prices. measures the total value of only finished goods and services, whereas real GDP measures the value of all goods and services, both intermediate and finished. measures a country's production of finished goods...
SLUIC. U ULIC < 10 of 23 (5 complete) *4.2 Question 4 If the supply curve is very elastic and the demand curve shifts to the right, then O A. quantity will increase by a large amount and price by a small amount. O B. quantity will increase by a small amount and price by a large amount. O c. both quantity and price will increase by a small amount. OD. both quantity and price will increase by a large...
Trade creates value because: O idle resources are put to use. O people get what they want. O raw materials are transformed into finished products. O people exchange things they do not want for things they do. How are wealth and economic growth related? Economic growth causes increases in wealth. Increases in wealth help facilitate economic growth. O Wealth and economic growth are negatively related. O Economic growth causes resource depletion and reduces society's wealth. Trade makes people better off...
The demand for a bond decreases and the supply for that bond increases. As a result, in equilibrium, the stock of that bond in the financial system ___________ while its yield __________ . A. may increase or decrease; decreases B. may increase or decrease; increases C. increases; may increase or decrease D. decreases; decreases
How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate? O Either supply or demand must increase Both supply and demand must increase. Supply must increase while demand decreases
12 Suppose the supply chain for a clothing industry is as follows: Raw materials > Parts manufacturing > Final assembly > Retailer > Customer If a final assembly company wants to expand into the manufacturing industry, it is pursuing a Horizontal integration Tapered integration Backward vertical integration Forward vertical integration
In the thermal boundary layer over a cylinder in cross flow (Ts >T..) with Rep 10%, starting with the stagnation point, the local convective heat transfer coefficient with angular coordinate 0. Decreases and increases O Decreases, Increases, decreases and increases again Decreases and remains constant after reaching a minimum O Increases and decreases