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6. If there is an increase in the government budget deficit_______. the demand f

ID: 1238746 • Letter: 6

Question

6. If there is an increase in the government budget deficit_______.
       the demand for loanablefunds will increase, interest rates will increase, and the amountof borrowing will increase
       the demand for loanablefunds will decrease, interest rates will decrease, and the amountof borrowing will decrease
       the supply of loanablefunds will increase, interest rates will decrease, and the amountof borrowing will increase
       the supply of loanablefunds will decrease, interest rates will increase, and the amountof borrowing will decrease


7. If the interest rate in the market forloanable funds is above the equilibrium interest rate, we know that_______.        there is a shortageof loanable funds
       savings exceedinvestment spending
       the quantity demanded ofloanable funds exceeds the quantity supplied of loanablefunds
       consumption is smallerthan savings


8. Crowding out means _______.        private savingsdecreases when the government borrows
       private investmentdecreases when the government borrows
       there are too manyplayers in the financial markets
       some bond holders willbe squeezed out of the market


9. One way to reduce financial risk is_______.        to only buy stock ina major company
       to only buy bonds in amajor company
       to diversify in avariety of assets, both financial and physical
       to diversify in a numberof banks


10. The most important driver for economicgrowth appears to be _______.        more physicalcapital
       more humancapital
       progress intechnology
       all of theabove
6. If there is an increase in the government budget deficit_______.
       the demand for loanablefunds will increase, interest rates will increase, and the amountof borrowing will increase
       the demand for loanablefunds will decrease, interest rates will decrease, and the amountof borrowing will decrease
       the supply of loanablefunds will increase, interest rates will decrease, and the amountof borrowing will increase
       the supply of loanablefunds will decrease, interest rates will increase, and the amountof borrowing will decrease


7. If the interest rate in the market forloanable funds is above the equilibrium interest rate, we know that_______.        there is a shortageof loanable funds
       savings exceedinvestment spending
       the quantity demanded ofloanable funds exceeds the quantity supplied of loanablefunds
       consumption is smallerthan savings


8. Crowding out means _______.        private savingsdecreases when the government borrows
       private investmentdecreases when the government borrows
       there are too manyplayers in the financial markets
       some bond holders willbe squeezed out of the market


9. One way to reduce financial risk is_______.        to only buy stock ina major company
       to only buy bonds in amajor company
       to diversify in avariety of assets, both financial and physical
       to diversify in a numberof banks


10. The most important driver for economicgrowth appears to be _______.        more physicalcapital
       more humancapital
       progress intechnology
       all of theabove

Explanation / Answer

Answer: ABBCC

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