Answered: 1. 1-While Fiscal policy shifts supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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F1.

1-While Fiscal policy shifts supply for loanable funds, monetary policy has a larger impact on the demand of loanable funds Select one :

A False

B. True

2-Laddered Strategy of bond investment involves estimating future cash outflows and then developing a bond portfolio that can generate sufficient coupon or principal payments to cover those outflows Select one:

A- False

B- True

3-Even though the Central Bank's objectives of high employment and economic growth are clos policies can be specifically aimed at encouraging economic growth by Select one :

A- both A and B of the above

B-encouraging people to save

C- encouraging firms to invest.

D- neither A nor B of the above.

4-The premium between low-quality corporate bonds and the government bondsthe Select one

A significantly narrows

B significantly widens

C does not change

D is reversed

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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