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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