When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these expenditures
What is capital investment
100
Which of the following equations represents national saving in a closed economy?
What is Y-C-G
100
Institutions in the economy that help to match one person's saving with another person's investment are collectively called the
What is financial system
200
Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a
What is borrower who demands money from the financial system
200
In a closed economy, national saving is
What is equal to investment
200
A certificate of indebtedness that specifies the obligations of the borrower to the holder is called a
What is bond
300
The slope of the demand for loanable funds curve represents the
What is negative relationshipe between the real interest rate and investment
300
In a closed economy, what does (Y-T-C) represent?
What is private saving
300
Stock represents
What is all of the above
400
Suppose that Congress were to institute an investment tax credit. What would happen in the market for loanable fund?
What is the demand for loanable funds would shift right
400
The slope of the supply of loanable funds curve represents the
What is positive relation between the real interest rate and saving
400
Financial intermediaries are
What is financial institutions through which savers can indirectly provide funds to borrowers
500
Crowding out occurs when investment declines because
What is a budget deficit makes interest rates rise
500
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
What is there would be an increase in the amount of loanable funds borrowed.
500
A mutual fund
What is an institution that sells shares to the public and uses the proceeds to by a selection of various types of stocks, bonds, or both stocks and bonds