egards to savings, an increase in the real interest rate would: Select one: O O a. increase the amount of savings and increase the amount of current consumption b. Increase the amount of savings and decrease the amount of current consumption c. decrease the amount of savings and decrease the amount of current consumption d. decrease the amount of savings and increase the amount of current consumption O O

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.4P
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In regards to savings, an increase in the real interest rate would:
Select one:
O
a. increase the amount of savings and increase the amount of current consumption
b. Increase the amount of savings and decrease the amount of current consumption
c. decrease the amount of savings and decrease the amount of current consumption
O d. decrease the amount of savings and increase the amount of current consumption
O
O
The shadow banking system includes each of the following except:
Select one:
O
O
O
O
a. derivatives.
b. hedge funds.
c. commercial banks.
d. money market funds.
Continued long-run economic growth requires that economies:
Select one:
O
O
O
O
a. reach their steady-state levels of capital and output.
b. continue to increase their investment rates.
c. have high levels of capital stock.
d. have institutions in place that encourage research and development of new ideas.
Transcribed Image Text:In regards to savings, an increase in the real interest rate would: Select one: O a. increase the amount of savings and increase the amount of current consumption b. Increase the amount of savings and decrease the amount of current consumption c. decrease the amount of savings and decrease the amount of current consumption O d. decrease the amount of savings and increase the amount of current consumption O O The shadow banking system includes each of the following except: Select one: O O O O a. derivatives. b. hedge funds. c. commercial banks. d. money market funds. Continued long-run economic growth requires that economies: Select one: O O O O a. reach their steady-state levels of capital and output. b. continue to increase their investment rates. c. have high levels of capital stock. d. have institutions in place that encourage research and development of new ideas.
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