34. Which one of the following public policies promotes economic growth in the country?

A. Capital formation by borrowing from foreign nations B. Government giving unemployment benefits C. Government spending on welfare programs D. Increase in the personal income tax E. Reduction in government regulation

36. If the sum of household, business, and government demands for funding exceeds the availability of savings from households, business, government, and foreign sources, which of the following can be expected?

A. The real interest rate should decrease to equate demand for funding and savings. B. The government will be required to increase its taxes to supplement funding its government expenditures. C. Businesses will accelerate their depreciation of existing capital to increase their desired investment to equate the demand and supply of funding. D. There will be an excess demand for funding, leading to an increase in the real interest rate to equate demand and supply for funds. E. The government will increase the issuance of new bonds to offset the overall deficiency in the supply of funds.

37. Achieving the maximum increase in the money supply, for a given money multiplier, is slowed when

A. the general public redeposits all cash proceeds of expenditures from loans B. the central bank lowers the discount rate C. the legislature increases government spending D. the banks have financially strong customers seeking loans E. the banks tend to lend slowly, holding excess reserves