Homework Answers
d is correct
Reason
National savings will increase as there is a budget surplus, those surplus amount will be saved. Those savings are also going to be invested, thus this will increase the supply of loanable fund.
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malpm07r.13.075 If a country went from a government budget deficit to a surplus, which statement would...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. red...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
If a government went from a deficit to a surplus, government debt would decrease, the supply...
If a government went from a deficit to a surplus, government debt would decrease, the supply of loanable funds would shift to the right and interest rates would fall. Select one: True False People who buy stock in a corporation such as Honda become part owners of Honda, so the benefits of holding the stock depend on Honda's profits. Select one: True False When large corporations, the federal government, or state and local governments need to borrow to finance their...
How does the supply or demand for loanable funds shift when a country increases its budget...
How does the supply or demand for loanable funds shift when a country increases its budget deficit? O a. The demand for loanable funds shifts right. 10 b. The supply of loanable funds shifts right. 10 c. The demand for loanable funds shifts left. O d. The supply of loanable funds shifts left.
QUESTION 22 A decrease in the budget deficit a. may increase, decrease, or not affect investment...
QUESTION 22 A decrease in the budget deficit a. may increase, decrease, or not affect investment spending if private saving doesn’t change. b. makes investment spending fall. c. makes investment spending rise. d. does not affect investment spending. QUESTION 23 A larger budget deficit a. raises the interest rate and investment. b. raises the interest rate and reduces investment. c. reduces the interest rate and investment. d. reduces the interest rate and raises investment. QUESTION 24 A government budget deficit...
Other things the same, an increase in taxes with no change in government purchases makes national...
Other things the same, an increase in taxes with no change in government purchases makes national saving a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.
According to the loanable funds framework, if the government runs a budget deficit due to an...
According to the loanable funds framework, if the government runs a budget deficit due to an increase in spending, None of the other answers are truc. Interest rates will decrease. Interest rates will increase. Interest rates will increase and the supply of loanable funds will increase. The supply of loanable funds will increase. The purpose of a central bank is to Only two of these are correct: Regulate the supply of money AND oversee the banking system. oversee the banking...
The following table shows the supply and demand for loanable funds schedule in a small island...
The following table shows the supply and demand for loanable funds schedule in a small island country in the Caribbean at the beginning of 2016. By the end of the year however, the demand for loanable funds increases by $2 billion at each level of the real interest rate and the supply of loanable funds increased by $1 billion at each interest rate. Predict the conditions of the loanable funds market in this country, under the following two scenarios: Scenario...
30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise...
30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for Ioanable funds shifts left.
it is budget surplus, rather than deficit 4. Suppose the market for loanable funds is current...
it is budget surplus, rather than
deficit
4. Suppose the market for loanable funds is current in equilibrium, with zero capital inflows or capital outflows and zero government budget deficit. (a) Using a supply and demand diagram, depict this situation. 5 points. (b) Suppose the government begins to run a budget surplus; assuming all else equal, depict the effect this will have on the interest rates and total lending. 5 points. (c) What effect will this deficit have on the...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...
How does the supply or demand for loanable funds shift when a country increases its budget deficit? O a. The demand for loanable funds shifts right. 10 b. The supply of loanable funds shifts right. 10 c. The demand for loanable funds shifts left. O d. The supply of loanable funds shifts left.
According to the loanable funds framework, if the government runs a budget deficit due to an increase in spending, None of the other answers are truc. Interest rates will decrease. Interest rates will increase. Interest rates will increase and the supply of loanable funds will increase. The supply of loanable funds will increase. The purpose of a central bank is to Only two of these are correct: Regulate the supply of money AND oversee the banking system. oversee the banking...
The following table shows the supply and demand for loanable funds schedule in a small island country in the Caribbean at the beginning of 2016. By the end of the year however, the demand for loanable funds increases by $2 billion at each level of the real interest rate and the supply of loanable funds increased by $1 billion at each interest rate. Predict the conditions of the loanable funds market in this country, under the following two scenarios: Scenario...
30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for Ioanable funds shifts left.
it is budget surplus, rather than
deficit
4. Suppose the market for loanable funds is current in equilibrium, with zero capital inflows or capital outflows and zero government budget deficit. (a) Using a supply and demand diagram, depict this situation. 5 points. (b) Suppose the government begins to run a budget surplus; assuming all else equal, depict the effect this will have on the interest rates and total lending. 5 points. (c) What effect will this deficit have on the...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
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