Which of the following would normally be expected to result in an increase in the supply of funds, all else equal?10I. The perceived riskiness of all investments decreases.II. Expected inflation increases.III. Current income and wealth levels increase.IV. Near term spending needs of households increase as energy costs rise.Multiple ChoiceI and III onlyIl and IlII onlyII, II, and IV onlyI and IV onlyI, II, III, and IV

I) The perceived riskiness of all investments decreases which leads to an increase in investment as…

Answered: Which of the following would normally…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the 'mps' ? a) 1/3 b) 2/3 c) 3/2 d) 1/2 e) 4
A high marginal propensity to save means ? (a) lower multiplier (b). Higher is the investment spending (c). Higher is the equilibrium income (d). A higher level of aggregate demand (e). A high level of exports
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1. The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to A. higher investment spending and lower consumption spending. B. lower investment spending and lower consumption spending. C. lower investment spending and higher consumption spending. D. higher investment spending and higher consumption spending.
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28. What is the level of investment, I? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. The next two questions involve the following information. The real interest rate, r, is the nominal interest rate, i, minus inflation, 7. In formal terms, r = i- T. For example, if an investment offers an annual return of 5 percent, and inflation is 2 percent, then the real interest rate is 3 percent. 29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bond? (A) 6 percent. (В) 8.5 рercent. (C) 10 percent. (D) 12.5 percent. 30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond? (A) 6 percent. (В) 8.5 percent. (C) 10 percent. (D) 12.5 percent.
41. Suppose that government institutes an investment tax credit and such policy generates an increase in the government budget deficit. This would: a. shift the saving curve (i.e. supply of loanable funds) to the left. b. cause the real interest rate to fall.
Question 1 The savings rate is a) the difference between gross income and disposable income. b) the percentage reduction in taxes due to permitted deductions. Oc) cash savings as a percentage of total net worth. d) the ratio of personal income to taxes paid on income. e) personal savings as a percentage of disposable income.
A budget expresses management's objectives and goals in financial terms. It can be used for all of the following except: a. to establish standards or targets for dollar expenditures. b. to provide a standard against which expenditures can bemeasured. c. to establish flexible spending parameters for controllable expenses. d. to establish limits for expenditure, and thus to restrict the amounts that can be spent for particular purposes..
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