ECON 2301 Week 7 Quiz | Assignment Help | Central Texas College
- Central Texas College / ECON 2301
- 06 Oct 2020
- Price: $5
- Other / Other
ECON 2301 Week 7 Quiz | Assignment Help | Central Texas College
|
Question
1 |
|
|
Figure 26-2. The figure depicts a
supply-of-loanable-funds curve and two demand-for-loanable-funds curves. |
a. The government goes
from running a budget deficit to running a budget surplus.
b. A change in the tax
laws encourages people to consume less and save more.
c. A change in the tax
laws encourages people to consume more and save less.
d. Firms become optimistic about the future
and, as a result, they plan to increase their purchases of new equipment and
construction of new factories.
Question 2
Figure 26-4. On the horizontal axis of the
graph, L represents the quantity of loanable funds in billions
of dollars.
Refer to Figure 26-4. Which of the following
events could explain a shift of the demand-for-loanable-funds curve from D1 to D2?
a. The tax code is
reformed to encourage greater saving.
b. The government
starts running a budget deficit.
c. The government
starts running a budget surplus.
d. The tax code is reformed to encourage
greater investment.
Question 3
|
A tech company loses a high-profile patent-infringement case against
its top competitor. Which of the following is true? |
||||
a. Supply of the
company's stock decreases, while the price of a share falls.
b. Demand for the
company's stock decreases, while the price of a share rises.
c. Supply of the
company's stock decreases, while the price of a share falls.
d. Demand for the company's stock decreases,
while the price of a share falls.
Question 4
|
As real interest rates fall, firms desire to |
||||
a. buy more new
equipment and buildings. This response helps explain why the supply of loanable
funds is upward sloping.
b. buy less new
equipment and buildings. This response helps explain why the supply of loanable
funds is upward sloping.
c. buy less new
equipment and buildings. This response helps explain why the demand for
loanable funds is downward sloping.
d. buy more new equipment and buildings. This
response helps explain why the demand for loanable funds is downward sloping.
Question 5
|
Figure 26-1. The figure depicts a
demand-for-loanable-funds curve and two supply-of-loanable-funds curves.
b. In response to
tax reform, households are encouraged to save more than they previously saved. c. Government goes from running a balanced budget to
running a budget deficit. d. Any of the above events would shift the supply curve
from S1 to S2. Question 6
a. -2,000, 1,000, and
2,000, respectively. b. 1,000, 2,000, and
3,000, respectively. c. 2,000, -1,000, and 1,000, respectively. d. 2,000, 1,000, and
2,000, respectively. ·
Question 7
a. Congress passes a
reform of the tax laws that encourages greater saving. b. Firms become
pessimistic about the future and, as a result, they cut back on their plans to
buy new equipment and build new factories. c. The government goes
from running a budget deficit to running a budget surplus. d. Congress passes a reform of the tax laws
that encourages greater investment. ·
Question 8
a. supply the required
funds by buying bonds. b. demand the required funds by selling bonds. c. supply the required
funds by selling bonds. d. demand the required
funds by buying bonds. ·
Question 9
a. overvalued or people
are relatively pessimistic about the corporation's prospects. b. undervalued or people are relatively
pessimistic about the corporation's prospects. c. undervalued or
people are relatively optimistic about the corporation's prospects. d. overvalued or people
are relatively optimistic about the corporation's prospects. ·
Question 10 Figure 26-2.
The figure depicts a supply-of-loanable-funds curve and two
demand-for-loanable-funds curves.
a. the
nominal interest rate b. the quantity of loanable funds c. the size
of the government budget deficit or surplus
d. the real
interest rate |
||||||||||||||||||||||||||||||||||||||||||||
USA 
India