Question
1.Using the Supply and Demand of Loanable Funds model, what is the main effect of the following change in the Loanable Funds market?: The economy
1.Using the Supply and Demand of Loanable Funds model, what is the main effect of the following change in the Loanable Funds market?:
The economy is going well, and company owners would like to grow their businesses but don't have enough money to do so
Group of answer choices
A. an increase in supply of loanable funds
B. a decrease in demand of loanable funds
C. a decrease in supply of loanable funds
D. an increase in demand for loanable funds
2.Using the Supply and Demand model, what is the predicted result of the following change in the Loanable Funds market?:
Investors' wealthgoes down
Group of answer choices
A. interest rates decrease, quantity of loans decreases
B. interest rates increase, quantity of loans decreases
C. interest rates increase, quantity of loans increases
D. interest rates decrease, quantity of loans increases
3.From the trade model, the two countries will always gain from voluntary trade except
A. If the countries are very similar
B. If one country has a comparative advantage in both models
C. If one country has an absolute advantage in both models
4.Place the following items under their correct category for GDP calculation
A manufacturer has unsold hand sanitizer at the end of the year
A. Not counted as part of GDP
B. Net exports
C. Consumption,
D. Investment
E. Government spending
5.Place the following items under their correct category for GDP calculation:
The government sends out a stimulus check to US residents
A. Investment
B. Government spending
C. Consumption,
D. Not counted as part of GDP
E. net exports
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