If expectations about the future don't change at all, then an economic downturn will generally:
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left.
B. increase savings at a given interest rate and shift the supply curve for loanable funds to the left.
C. decrease savings at a given interest rate and shift the supply curve for loanable funds to the right.
D. increase savings at a given interest rate and shift the supply curve for loanable funds to the right.
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left.
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Prices of final goods and services in Eduland have increased by 23% between Year 1 and Year 2. If the GDP deflator of Eduland in Year 1 was 100, the GDP deflator of Eduland in Year 2 is ________
A) 50 B) 112 C) 103 D) 123
During the expansion phase of the business cycle,
A) employment decreases. B) income decreases. C) unemployment increases. D) production increases.
Knowledge capital is
A) rival. B) nonrival. C) nonexcludable. D) both B and C
Which of the following is FALSE about private savings and government savings?
A) SP = Y - T - C B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment. C) Total savings (S) = SP + . D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions. E) None of the above; all statements are true.