Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and government spending is $5,000.In this case, private saving is _____.

Question 23 options:

$5,000

$10,000

$15,000

none of the above

Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and government spending is $5,000.In this case, investment is _____.

Question 24 options:

($5,000)

$5,000

$15,000

none of the above

In the model of the market for loanable funds, which of the following best describes why the supply curve is upward sloping?

Question 25 options:

The higher the interest rate, the more likely households are to spend

The higher the interest rate, the less likely firms are invest

The higher the interest rate, the more likely households are to borrow

The higher the interest rate, the more likely households are to save

Consider the market for loanable funds.If households become more wealthy, then the demand for loanable funds will _____ and the supply of loanable funds will _____.

Question 26 options:

increase; not change

not change; decrease

not change; increase

increase; increase

Consider the market for loanable funds.If households become more wealthy, then the interest rate will _____.

Question 27 options:

increase

decrease

be indeterminate

Consider the market for loanable funds.If households become more wealthy, then the quantity of saving/borrowing that occurs will _____.

Question 28 options:

increase

decrease

be indeterminate