Which of the following will lead to an increase in the demand for loanable funds in the US?
a. decrease in the real interest rate in the US
b. increase in household saving
c. an increase in US government borrowing
d. an increase in the supply of loanable funds in other countries
e. decrease in the supply of loanable funds in the US
Ans: c. an increase in US government borrowing
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If the U.S. capital and financial account balance has a $30 million surplus and there was no change in official reserves during that year, we know that
A) the United States has a $30 million current account deficit. B) U.S. official reserves have increased by $30 million. C) the United States is a net lender. D) U.S. net foreign lending must equal $30 million. E) the United States has a $30 million current account surplus.
Which of the following views most likely would belong to a behavioral economist?
A. Governments should never intervene in a housing bubble. B. When people spend too much, they are just reflecting their wants. C. More growth is needed to make society better off. D. Change the institutional structure to get people to save more.
Which of the following might be considered to be a characteristic of a planned economy?
What will be an ideal response?
Lack of access to sanitation and inadequate medical care have a negative impact on the development of human capital.
Answer the following statement true (T) or false (F)