1 of 203
Term Definition
38) Refer to Figure 9-1. The
A
loanable funds market is in
equilibrium, as shown in the
figure above.
Technological breakthroughs
which make capital more
productive could result in which
of the
following combinations of the
real interest rate and quantity of
loanable funds at a new
equilibrium?
A) The real interest rate is 3
percent, and the quantity of
loanable funds is $90 million.
B) The real interest rate is 5
percent, and the quantity of
,loanable funds is $150 million.
C) The real interest rate is 5
percent, and the quantity of
loanable funds is $90 million.
D) The real interest rate is 3
percent, and the quantity of
loanable funds is $150 million.
Give this one a try later!
True False
Correct definition
B
2 of 203
Term Definition
5) Under which of the following D
circumstances would the
government be running a
deficit?
A) G = $6 trillion T = $7 trillion TR
= $1 trillion
B) G = $7 trillion T = $10 trillion
TR = $3 trillion
C) G = $5 trillion T = $7 trillion TR
= $1 trillion
D) G = $4 trillion T = $5 trillion TR
= $2 trillion
,Give this one a try later!
True False
3 of 203
Term Definition
55) Which of the following
B
would you expect to decrease
the equilibrium interest rate?
A) an increase in the budget
deficit
B) an investment tax credit given
to firms that purchase new
capital
C) an increase in the
percentage of income that
households save
D) an increase in the profitability
of investment projects firms are
considering
E) More than one of the above
is correct
Give this one a try later!
True False
Correct definition
, C
4 of 203
Term Definition
38) Unexpectedly low inflation
A
causes which of the following?
A) Borrowers pay a higher real
interest rate than they expected.
B) Lenders receive a lower real
interest rate than they expected.
C) Neither borrowers nor
lenders lose.
D) Both lenders and borrowers
gain.
E) More than one of the above
is correct.
Give this one a try later!
True False
5 of 203
Term Definition
42) Consider the following two
C
events:
Event I. Because interest rates
fall from 5% to 4%, the local
bakery decides to borrow more
Term Definition
38) Refer to Figure 9-1. The
A
loanable funds market is in
equilibrium, as shown in the
figure above.
Technological breakthroughs
which make capital more
productive could result in which
of the
following combinations of the
real interest rate and quantity of
loanable funds at a new
equilibrium?
A) The real interest rate is 3
percent, and the quantity of
loanable funds is $90 million.
B) The real interest rate is 5
percent, and the quantity of
,loanable funds is $150 million.
C) The real interest rate is 5
percent, and the quantity of
loanable funds is $90 million.
D) The real interest rate is 3
percent, and the quantity of
loanable funds is $150 million.
Give this one a try later!
True False
Correct definition
B
2 of 203
Term Definition
5) Under which of the following D
circumstances would the
government be running a
deficit?
A) G = $6 trillion T = $7 trillion TR
= $1 trillion
B) G = $7 trillion T = $10 trillion
TR = $3 trillion
C) G = $5 trillion T = $7 trillion TR
= $1 trillion
D) G = $4 trillion T = $5 trillion TR
= $2 trillion
,Give this one a try later!
True False
3 of 203
Term Definition
55) Which of the following
B
would you expect to decrease
the equilibrium interest rate?
A) an increase in the budget
deficit
B) an investment tax credit given
to firms that purchase new
capital
C) an increase in the
percentage of income that
households save
D) an increase in the profitability
of investment projects firms are
considering
E) More than one of the above
is correct
Give this one a try later!
True False
Correct definition
, C
4 of 203
Term Definition
38) Unexpectedly low inflation
A
causes which of the following?
A) Borrowers pay a higher real
interest rate than they expected.
B) Lenders receive a lower real
interest rate than they expected.
C) Neither borrowers nor
lenders lose.
D) Both lenders and borrowers
gain.
E) More than one of the above
is correct.
Give this one a try later!
True False
5 of 203
Term Definition
42) Consider the following two
C
events:
Event I. Because interest rates
fall from 5% to 4%, the local
bakery decides to borrow more
