________ increases households' saving. A) An increase in default risk B) Higher expected future income C)...
________ increases households' saving.
A) An increase in default risk
B) Higher expected future income
C) A decrease in the real interest rate
D) A decrease is tax rate
E) An increase in wealth
Homework Answers
And decreasing the real interest rate can get to demotivate the people in order to see you more because they actually getting less return for the savings in this decrease their household savings and a decrease in tax rate gets to identify the increase in consumable income with which proportionately savings and consumption will increase and therefore
(D) is the answer to this question
Add Answer to:
________ increases households' saving.
A) An increase in default risk
B) Higher expected future income
C)...
How do households make saving decisions? The the greater is the amount that a household decides...
How do households make saving decisions? The the greater is the amount that a household decides to save. O A. smaller a household's expected future income and the greater a household's wealth O B. smaller the default risk and the greater a household's wealth O c. greater a household's disposable income and the smaller a household's expected future income OD. higher the expected profit and the greater a household's disposable income
If disposable income increases, people will decide to ________ saving, the supply of loanable funds will...
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
i need answers and explanations 35. With the low unemployment rate, households become more optimistic about...
i need answers and explanations
35. With the low unemployment rate, households become more optimistic about the future economy and decide to increase their spending on durable goods such as automobiles. According to the model of the market for loanable funds, A) real interest rate and the quantity of loanable funds will remain unchanged. B) real interest rate will increase and the quantity of loanable funds will decrease. C) real interest rate will decrease and the quantity of loanable funds...
1. Th e supply of loanable funds: comes from households that consume all of their income...
1. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
1. If people expect higher inflation in the near future, the expected return on bonds rises/falls), and the deman...
1. If people expect higher inflation in the near future, the expected return on bonds rises/falls), and the demand for money (increases/decreases), leading to the rate of interest increasing/decreasing). 2. For the following questions, fill in the blanks below with: rises/falls/right/left/increase/decrease a. When real income increases, the demand curve for money shifts to the the interest rate _, everything else held constant. and b. A business cycle expansion increases income, causing money demand to interest rates to , everything else...
What influences the supply of loanable funds? The supply of loanable funds is influenced by O...
What influences the supply of loanable funds? The supply of loanable funds is influenced by O A. the real interest rate, and as the real interest rate rises, the supply of loanable funds increases O B. expected future income, and the higher a household's expected future income, the smaller is its saving today O c. expected profit OD. a household's wealth, and the greater a household's wealth, the greater is its saving
C. a higher tax on corporate profits D. none of the above. 19. If the nominal...
C. a higher tax on corporate profits D. none of the above. 19. If the nominal interest rate is 5% and the real interest rate is 2%, a lender will _in terms of purchasing power over a year if she lends at these terms. 2 A. lose 3% B. lose 2% C. gain 2% D. gain 3% 20. Which of the following would lead to lower interest rates? A. households receive news that makes them believe that their incomes will...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer. Complete the sentences....
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...
A higher tax rate on interest income provides an incentive for private saving, but a higher...
A higher tax rate on interest income provides an incentive for private saving, but a higher interest rate provides a disincentive for private saving Select one: True False People would desire to borrow more if the nominal rate of interest is 6 percent with a corresponding inflation rate of 2 percent than if the nominal rate of interest is 5 percent with a corresponding inflation rate of 3 percent. Select one: True False Mutual funds are one type of financial...
How do households make saving decisions? The the greater is the amount that a household decides to save. O A. smaller a household's expected future income and the greater a household's wealth O B. smaller the default risk and the greater a household's wealth O c. greater a household's disposable income and the smaller a household's expected future income OD. higher the expected profit and the greater a household's disposable income
i need answers and explanations
35. With the low unemployment rate, households become more optimistic about the future economy and decide to increase their spending on durable goods such as automobiles. According to the model of the market for loanable funds, A) real interest rate and the quantity of loanable funds will remain unchanged. B) real interest rate will increase and the quantity of loanable funds will decrease. C) real interest rate will decrease and the quantity of loanable funds...
1. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
1. If people expect higher inflation in the near future, the expected return on bonds rises/falls), and the demand for money (increases/decreases), leading to the rate of interest increasing/decreasing). 2. For the following questions, fill in the blanks below with: rises/falls/right/left/increase/decrease a. When real income increases, the demand curve for money shifts to the the interest rate _, everything else held constant. and b. A business cycle expansion increases income, causing money demand to interest rates to , everything else...
What influences the supply of loanable funds? The supply of loanable funds is influenced by O A. the real interest rate, and as the real interest rate rises, the supply of loanable funds increases O B. expected future income, and the higher a household's expected future income, the smaller is its saving today O c. expected profit OD. a household's wealth, and the greater a household's wealth, the greater is its saving
C. a higher tax on corporate profits D. none of the above. 19. If the nominal interest rate is 5% and the real interest rate is 2%, a lender will _in terms of purchasing power over a year if she lends at these terms. 2 A. lose 3% B. lose 2% C. gain 2% D. gain 3% 20. Which of the following would lead to lower interest rates? A. households receive news that makes them believe that their incomes will...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer. Complete the sentences....
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...
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