Market for Loanable Funds(Macroeconomics)

Question 1

A balanced budget budgeting process where total expected revenues are equal to total planned spending.

Accepted Answer

True

Question 2

Budget Surplus is

Accepted Answer

when taxes collected is more than the amount the government is spending

Question 3

Which of the following caused the shift down

Accepted Answer

Domestic Savings decreases

Question 4

The interest rate known as the price of borrowing.

Accepted Answer

True

Question 5

What causes the supply curve to shift?

Accepted Answer

All of the Above

Question 6

Investment Demand is when businesses demand physical capital goods and services to maintain or expand operations

Accepted Answer

True

Question 7

What is the definition of a loanable fund market?

Accepted Answer

A market where loans from savers are allocated to borrowers with projects

Question 8

Why does the quantity of loanable funds supplied increases when the real interest rate increases?

Accepted Answer

Higher interest rates encourages savings

Question 9

What would be the result if the interest rate on bonds increases?

Accepted Answer

People will put more money into assets instead of saving

Question 10

Which of the following would be a result of a government moving from a balanced budget to a budget deficit?

Accepted Answer

Interest rates increase

Question 11

Time preferences are when_____

Accepted Answer

People spend today and save for later, to keep interest rates positive

Question 12

A budget deficit occurs when money going out exceeds money coming in .

Accepted Answer

True

Question 13

The demand for loanable funds is based on borrowing.

Accepted Answer

True

Question 14

Investment demand by firms increases real interest rates

Accepted Answer

False

Question 15

1. Who participates in the loanable funds market?

Accepted Answer

Lenders and Borrowers

Question 16

What is the main source of loanable funds?

Accepted Answer

Savings

Questions 16