+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
The latest unemployment rate for the US:
|
8-9%
|
|
Assume that I=Sprivate + Sgovernment + (IM-X). Lets assume that imports are greater than exports. Which is true
|
Private Saving plus government saving would be less than investment
|
|
Government Runs a budget Deficit... what happens
|
- The Government becomes a borrower in the market for loanable funds- The interest rate rises- Some private investment spending is crowded out
|
|
A firm is deciding whether or not to invest in a project. It should invest if:
|
Internal rate of return exceeds the interest rate
|
|
The investment demand curve (demand for loanable funds curve) shows the:
|
Negative relationship between the interest rate and the quantity of investment
|
|
When a corporation borrows money from lenders in exchange for a fixed rate of return and a given maturity date, the corporation is:
|
Issuing bonds
|
|
Main role of financial systems is to:
|
Channel funds from savers into investment
|
|
Financial Assets that carry more risk:
|
Usually have higher rate of return
|
|
When you take a loan from a bank it:
|
Is a liability to you and an asset to the bank
|
|
If private savings decrease:
|
The supply of loanable funds will decreaseinterest rates will increasethe amt of borrowing will decrease
|
|
In aggregate demand/aggregate supply analysis, the horizontal axis (x-axis) is measuring:
|
Real GDP
|
|
An aggregate demand curve shows:
|
The inverse (negative) relationship between the price level and the total quantity of goods and services demanded
|
|
According to the "wealth effect", when prices of output increase, the purchasing power of assets:
|
Decreasesconsumer spending decreases
|
|
Cutting income taxes shifts the:
|
Aggregate demand curve to the right
|
|
Which of the following would likely cause the short-run aggregate supply curve to shift to the right?
|
A decrease in the price of imported oil
|
