ECON #77

Question 1 If government savings is positive, then Select one: a. the budget balance is negative. b. there is a trade surplus. c. net exports must be positive. d. national savings must be greater than investment. e. tax revenues exceed government spending. Question 2 In an open economy Select one: a. national savings is equal to investment spending. b. investment spending is equal to national savings plus net capital inflow. c. net capital inflow is equal to investment spending. d. there is a budget deficit. e. national savings is equal to net capital inflow. Question 3 The federal government is said to be "dissaving" when Select one: a. national savings equals private savings. b. there is a budget surplus. c. savings does not equal investment spending. d. there is a budget deficit. e. there is no budget surplus or deficit, a balanced budget. The real interest rate equals the Question 4 Select one: a. nominal interest rate divided by the inflation rate. b. nominal interest rate plus the inflation rate. c. federal funds rate d. nominal interest rate minus the inflation rate. e. nominal interest rate times the inflation rate. Question 5 Which of the following will increase the demand for loanable funds? Select one: a. an increase in the interest rate. b. an increase in perceived business opportunities. c. a decrease in the interest rate. d. positive capital inflows. e. a decreased private savings rate. Question 6 If households decide to save more, then Select one: a. the demand for loanable funds increases and the interest rate will decrease. b. the supply of loanable funds will increase and interest rates will decrease. c. The supply of loanable funds will increase and interest rates will increase. d. the demand for loanable funds increases and interest rates will increase. e. the supply of loanable funds will decrease and interest rates will decrease.