Which of the following is most likely to cause the savings supply curve in the market for loanable funds to shift leftward?
A) Government borrows to finance a war.
B) All firms project higher future revenue streams for all of their projects.
C) All firms project lower future revenue streams for all of their projects.
D) Government institutes a high tax on savings.
D
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If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is
A) -2 percent per year. B) 8 percent per year. C) 6 percent per year. D) 0 percent per year. E) 14 percent per year.
Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if
(a) future income rises? (b) business taxes rise? (c) government expenditures decline temporarily? (d) the future marginal product of capital rises?
The general term elasticity refers to a relationship between
a. quantity demanded and price only b. quantity supplied and price only c. quantity supplied or demanded and price only d. quantity supplied or demanded and anything other than price e. percentage changes in any two variables
When a firm issues new shares of stock
A. it lessens the relative value of its net worth. B. it does not add to its debt. C. it increases its debt load. D. it must buy back existing shares of stock in return.