An open economy has GDP of $1,000 billion, consumption of $650 billion, government expenditures of $150 billion, and domestic investment of $40 billion. What is its demand for loanable funds?
a. $40 billion
b. $120 billion
c. $160 billion
d. $200 billion
d
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Refer to Table 11.1. What is the value of the marginal propensity to consume?
A) 0.15 B) 0.6 C) 0.75 D) 0.9
Refer to Figure 13-1. Ceteris paribus, an increase in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
If the Treasury prints currency to finance an expenditure, the impact on the money supply is similar to when the Treasury borrows from the
A) banking system when it is fully loaned-up. B) banking system when it has excess reserves. C) non-bank public. D) Federal Reserve.
The law of demand states that a lower price increases the amount of a commodity that people are willing to buy
a. True b. False Indicate whether the statement is true or false