The Table Shows the Demand for Loanable Funds Schedule and

Topics: Public finance, Tax, Deficit Pages: 3 (672 words) Published: April 5, 2011
The table shows the demand for loanable funds schedule and the private supply of loanable funds schedule when the government’s budget 7:6 ***********

A rise in the real interest rate:
Creates a movement up along the demand for loanable funds curve.

The greater a household’s wealth the less is its saving.

If households believe they will experience higher income in the near future, there is a Rightward shift of the supply of loanable funds curve

If the world real interest rate falls, then a country that is a net foreign lender, Decrease the amount of its lending.

If national saving equals $100,000, net taxes equal 100,000 and government expenditure equals 25,000, what is private saving?

An increase in the government budget deficit________. If the country is an international borrower, the government budget deficit ______. Increase the country’s demand for lonable funds, increase, decrease

If the nominal interest rate is 11 percent and the inflation rate is 9 percent, 2 percent

The supply of loanable funds curve is SLF and the demand for loanable funds curve is DLF. An expansion that increases disposable income and expected profit Shifts the supply loanable funds curve rightwards to surve SLF1, and shifts the demand for lonable

The Ricardo-Barro effect of a government budget deficit is An increase in private saving

If the economy’s capital stock decreases over time,
Depreciation exceeds gross investment

Which of the following influenes household saving?

A decrease in the government budget deficit decrease the _________ loanable funds and increase in the government demand for, supply of

In January, Tim’s gross investment was
200 000

The increase in the value of capital is
Net investment

In an individual economy that is integrated into the global market, the demand for loanable funds is determined by the demand and the supply of loanable funds is determined by the supply world's country's Country’s...
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