An increase in the budget surplus ? A. Shifts the supply of loanable funds to the left and increase the real interest rateB. Shift the supply of loanable funds to the right and reduces the real interest rate. C. Shifts…
If Pakistani citizens become less concerned with the future and save less at each real interest rate ? A. Real interest rates rise and investment falls B. Real interest rates rise and investment rises C. Real interest rates fall and…
An increase in the budget deficit is ? A. an increase in public saving B. a decrease in private saving C. None of these answersD. a decrease in public savings
An increase in the budget deficit will ? A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment B. lower the real interest rate and increase the quantity of loaable funds demanded for investment…
Which of the following sets of government policies is the most growth oriented ? A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit B. Increase tax on the returns to saving Provide investment…
If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ? A. Saving is unchanged B. There is an increased in saving and the economy…
If government spending exceeds tax collections? A. there is a budget deficit B. None of these answers C. There is a budget surplus D. private saving is positive
National Saving (or just saving) is equal to ? A. none of these answers B. investment + consumption expendituresC. private saving + public saving D. GDP government purchases
Credit risk refers to a bond’s ? A. Probability of default B. Price-earnings ratio C. dividend D. tax treatment
If the government increases investment tax credits and reduces taxes on the return to saving at the same time ? A. the real interest rate should fall B. the real interest rate should riseC. the impact on the real interest…