Technological progress that increases the expected profit shifts the demand for loanable funds curve
A) leftward and reduces the real interest rate.
B) rightward and increases the real interest rate.
C) rightward and reduces the real interest rate.
D) leftward and increases the real interest rate.
B
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Rising government expenditure, through its effect on the real interest rate, ________ v* and thus ________ net investment
A) raises, stimulates B) raises, depresses C) lowers, stimulates D) lowers, depresses
The net worth of a bank is equal to: a. the value of the financial assets the bank can buy
b. its total assets minus its total liabilities. c. the value of the assets that all borrowers hold. d. the value of the money the bank keeps on hand and does not loan.
Answer the following statement(s) true (T) or false (F)
1. Retained earnings means a corporation puts profits back into the company instead of paying them as dividends. 2. The term securities refers to real estate and cash. 3. Banks, mutual funds, savings and loans, and insurance companies are all types of financial intermediaries. 4. The total value of saving for an economy must be greater than the total value of investment. 5. Public saving is the amount of income the government has left over after paying for its spending.
GDP will clearly increase if
A) the market value of illegal exchanges increases. B) the money supply increases. C) the market value of final goods and services increases. D) taxes increase.