ECN 204 Study Guide - Loanable Funds, High-Yield Debt, Autarky

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orchidhedgehog705

15 Oct 2014

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Indicate whether the statement is true or false. ___: most entrepreneurs finance their purchases of real capital using their past saving. ___: to state that national saving is equal to investment, for a closed economy, is to state an accounting identity. ___: public saving is equal to national saving minus private saving. ___: to state that public saving is equal to investment, for a closed economy, is to state an accounting identity. ___: suppose a small closed economy has gdp of billion, consumption of billion, and government expenditures of billion. Then investment and national saving are both billion: the ratio of government debt to gdp was higher during the reagan presidency than at any previous time in. U. s. history: an increase in the demand for loanable funds increases the equilibrium interest rate and decreases the equilibrium level of saving. ___: an increase in the budget deficit shifts the demand for loanable funds to the right.

Related Questions

1. A decrease in investment spending that results from an increase in government borrowing is called

a.) a deficit

b.) a surplus

c.) a liability

d.) crowding out

2. In a closed economy:

a.) national saving equals net worth

b.) there are no taxes

c.) there is no interaction with other countries

d.) there is no government

3. If we calculate income minus taxes minus consumption, then we are left with:

a.) national saving

b.) investment

c.) public saving

d.) private saving

4. In the financial market, ____ are supplying the funds and ____ are demanding the funds.

a.) governments: people

b.) foreigners: banks

c.) borrowers: savers

d.) savers: borrowers

sangriaturtle342

gIVE AN ANALYSIS OF THE FOLLOWING:

Assume that the officials in Ecoland have compiled the following information about their economy for last year:

Y = 10,000
C = 6,000
T = 1,500
G = 1,700

The government uses the following equation for the investment function:

I = 3,300 - 100r

Where r = equal to Ecoland's real interest rate.

Calculate, then explain, the following:

Private saving
Public saving
National saving
Investment
The equilibrium real interest rate

oliveminnow660

Suppose the following table shows some national accounting data for a given year for some particular country.

Table 1 national accounting data

Amount (billions of dollars)	Quantity demanded
Consumption of fixed capital	280
Gross private domestic investment	900
Government consumption expenditures	520
Government investment expenditures	200
Imports	580
Exports	680
Household consumption expenditures	3105
Net property income paid overseas	20

1.What is the country's current account balance? What is the country's gross national saving?

2.Explain how net exports affect the economy. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other spending components of GDP?

tealtiger674

ECN 204 Study Guide - Loanable Funds, High-Yield Debt, Autarky

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