When a government raises its budget deficit, then that country's
a. national saving rises, so its supply of loanable funds shifts right.
b. national saving falls, so its supply of loanable funds shifts left.
c. national saving rises, so its demand for loanable funds shifts right.
d. national saving falls, so its demand for loanable funds shifts left.
b
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The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves
a. True b. False
Money is valuable because it
A) is backed by gold and silver. B) is issued by credit card companies such as American Express, MasterCard, and Visa. C) reduces transaction costs. D) is backed by U.S. Treasury bonds.
The range to the left of the midpoint on a linear demand curve is
A. infinite. B. elastic. C. inelastic. D. one.
The investment schedule shows the:
A. Inverse relationship between the expected rate of return and the quantity of investment demanded B. Positive relationship between the expected rate of return and the quantity of investment demanded C. Amounts business firms collectively intend to invest at each possible level of GDP D. Rate of interest that business firms must pay when they make investments in capital goods