The supply of loanable funds schedule shows that the
A) higher the real interest rate, the more the supply of loanable funds curve shifts rightward.
B) higher the real interest rate, the greater the quantity of loanable funds supplied.
C) higher the real interest rate, the greater the opportunity cost of supplying loanable funds.
D) higher the real interest rate, the lower the profit from making new investment.
E) lower the real interest rate, the greater the quantity of loanable funds supplied.
B
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If the cost of the CPI market basket at current period prices is $1000 and the cost of the CPI market basket at base period prices is $250, the CPI is
A) 2.50. B) 400. C) 250. D) 100. E) 4.0.
Refer to Table 15-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should A) increase income taxes. B) sell Treasury securities. C) increase the required reserve ratio. D) buy Treasury securities.
If we take into account transfer payments (TR) when we derive the saving and investment relationship, the saving and investment equation becomes
A) S = I + NFI + TR. B) S + TR = I + NFI. C) S = I + NFI. D) S = I + NX - TR.
The after-tax income received by the household sector is known as ________
A) disposable income B) retained earnings C) net national product per capita D) Gross Domestic Product