Answer.
D) Increase, Decrease
When people decide to spend a smaller percentage of each paycheack, this causes nationals saving to increase and the equilibrium interest rate to decrease in a closed economy.
When people are spenidng less , then savings will increase and eventually increase the national savings. Whereas eqilibrium interest rate will tend to decrease , to discourage saving and increase spending in an economy. Interest rates are increased to make savings more attractive. Thus, in a closed economy national savings will increase with less spending and interest rates will be decreased.
1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national...
When people decide to spend a smaller percentage of each paycheck, this causes national saving to ____ and the equilibrium interest rate to ____ in a closed economy. Group of answer choices increase : decrease increase : increase decrease : increase decrease : decrease
Question 48 1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to closed economy and the equilibrium interest rateto_Ina Increases increase decrease increase decrease decrease Increase decrease Ned < Previous Not ved Submit 30 SO 9 & 7 8 $ 4 % 5 # 3 6 2 P U Y T R W E ะบ J H G F. D S N M B V C X Question 49 1.67 pts Fluctuations...
Question 7 1.67 pts Jake remains in college for his senior year instead of joining a professional sports team. Jake's opportunity cost of remaining in college is the amount paid for tuition, books, food, and housing during the year. the amount he would have earned on the professional sports team. the amount paid for tuition and books plus the amount he would have earned on the professional sports team. the amount he paid for tuition and books during the year....
1.67 pts When the Federal Reserve purchases government treasury bonds from commercial banks, we can expect interest rates in the economy to As a result, spending by firms and households is likely to decrease : increase increase : increase increase : decrease decrease : decrease
In a closed economy, private saving is smaller than investment if government spending exceeds tax revenue. Select one: True False If there is a surplus of loanable funds, then neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. Select one: True False An increase in the budget deficit would cause a shortage of loanable funds at the original interest rate, which would lead to falling interest...
If disposable income increases, people will decide to ________ saving, the supply of loanable funds will ________ and the real interest rate will ________. A. increase; decrease; rise B. decrease; increase; fall C. decrease; decrease; rise D. increase; increase; fall
\ **each option is fall or rise // or increase or decrease *** causes the gov to run a budget SURPLUS or Deficit (options) **** last they want the graph curve shifted to reflect Scenario 3 10. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Treat each scenario separately by...
has to spend s] When the consumer price index falls, the typical family fewer dollars to maintain the same standard of living. economy' s overall price level is rising. which to choose, and this in turn increases the cost of maintaining the 6l Economists use the term inflation to describe a situation in which the 17) When a new good is introduced, consumers have more variety from same level of economic well-being. 18) The real interest rate is the interest...
Use the IS-LM model to predict the short-run effects of each of the following shocks on income, the interest rate, consumption, and investment. In each case, explain what the Bank of Canada should do to keep income at its initial level. For each of these four shocks, (1) shift the appropriate curve in the IS-LM graph to reflect how the economy will respond to the shock; (2) indicate the impact of the shock on consumption, income, interest rate, and investment...
Question 75 0.5 pts Scenario 26-2. Assume the following information for an imaginary, closed economy GDP = $5 trillion; consumption = $3.1 trillion; government purchases = $0.7 tallion; and taxes = $0.9 trillion. 75. Refer to Scenario 26-2. For this economy, national saving is equal to O a $1.1 trillion. O b. $2.9 trillion. O c. $1.2 trillion O d. $1.7 trillion Question 77 0.5 pts 77. Wages set above the equilibrium wage by a. firms to increase morale are...