(A) Suppose that in a closed economy GDP is equal to 15,000, taxes are equal to 2,000, Consumption equals 9,000, and government expenditures equal 4,000. What are private saving and public saving? a. 4000 and –2000 b. 4000 and 2000 c. 2000 and –2000 d. 2000 and 3000 (B) A lower interest rate induces people to a. save less, so the demand for loanable funds slopes upward. b. save less, so the demand for loanable funds slopes downward. c. invest more, so the demand for loanable funds slopes upward. d. invest more, so the demand for loanable funds slopes downward. (C) Alex puts $300 into an account when the interest rate is 5 percent. Later he checks his balance and finds he has about $330,75. How long did Alex wait to check his balance? a. 2 b. 2.5 c. 3 d. 4.5
(A) Suppose that in a closed economy GDP is equal to 15,000, taxes are equal to 2,000, Consumption equals 9,000, and government expenditures equal 4,000. What are private saving and
a. 4000 and –2000
b. 4000 and 2000
c. 2000 and –2000
d. 2000 and 3000
(B) A lower interest rate induces people to
a. save less, so the
b. save less, so the demand for loanable funds slopes downward.
c. invest more, so the demand for loanable funds slopes upward.
d. invest more, so the demand for loanable funds slopes downward.
(C) Alex puts $300 into an account when the interest rate is 5 percent. Later he checks his balance and finds he has about $330,75. How long did Alex wait to check his balance?
a. 2
b. 2.5
c. 3
d. 4.5
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