Which of the following is not a source of loanable funds?
A. The saving of households.
B. Business saving.
C. Commercial bank lending.
D. Government budget deficits.
Answer: D
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Let C = 300 + 0.75y and I = 200. Assume no government or foreign sectors. Investment needs to decrease by ________ to decrease equilibrium output by a total of $750
A) $75 B) $100 C) $150 D) $187.50
A key aspect of East Asian development policies was
a. lack of government intervention in company affairs b. government ownership of most companies c. government planning d. government incentives for particular companies e. none of the above
If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
A) must be balanced. B) must be positive. C) must be negative. D) could be either negative or positive, depending on the capital account. E) could be either negative or positive, depending on the net international investment position.
In 1982 the CEO of American Airlines spoke on the telephone to the CEO of Braniff Airlines. The CEO of American Airlines proposed that the two airlines fix prices. The CEO of Braniff Airlines rejected the proposal. The CEO of American Airlines:
A) was within his 1st Amendment right to free speech. B) was in violation of the antitrust laws which prohibit price fixing. C) was in violation of the antitrust laws which prohibit predatory pricing. D) Both B and C are correct. E) None of the above is necessarily correct.