1. In the language of (macro) economics, investment refers to A. saving. B. the purchase of...

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1. In the language of (macro) economics, investment refers to A. saving. B. the purchase of new capital. C. purchasing stocks, bonds, or mutual funds. D. All of the above are correct. (a) 0 2. Consider the figure above, which depicts a generalized version of the open-economy macro model. Suppose that the government budget goes from a surplus to deficit. The effects of the change could be illustrated by shifting the B. demand curve in panel (a) to the left and the supply curve in panel (c) to the left. (b) A. demand curve in panel (a) to the right and the demand curve in panel (c) to the left. C. supply curve in panel (a) to the right and the demand curve in panel (c) to the right. (c) D. supply curve in panel (a) to the left and the supply curve in panel (c) to the left. 3. If the U.S. government's expenditures exceeded its receipts, it would likely A. lend money to a bank or other financial intermediary. B. borrow money from a bank or other financial intermediary. C. buy bonds from the public. D. sell bonds to the public. 4. Mortgage interest rates-the interest rates people pay to borrow money to purchase homes- are determined primarily in the market for A. short-run money. B. long-run money. C. loanable funds. D. currency exchange. 5. Wilma is considering expanding her dress shop and borrowing the funds to do it. If interest rates rise, she is A. less likely to expand. This illustrates why the supply curve slopes downward in the loanable- funds market. B. more likely to expand. This illustrates why the supply curve slopes upward in the loanable- funds market. C. less likely to expand. This illustrates why the demand curve slopes downward in the loanable-funds market D. more likely to expand. This illustrates why the demand curve slopes upward in the loanable funds market. 1. In the language of (macro) economics, investment refers to A. saving. B. the purchase of new capital. C. purchasing stocks, bonds, or mutual funds. D. All of the above are correct. (a) 0 2. Consider the figure above, which depicts a generalized version of the open-economy macro model. Suppose that the government budget goes from a surplus to deficit. The effects of the change could be illustrated by shifting the B. demand curve in panel (a) to the left and the supply curve in panel (c) to the left. (b) A. demand curve in panel (a) to the right and the demand curve in panel (c) to the left. C. supply curve in panel (a) to the right and the demand curve in panel (c) to the right. (c) D. supply curve in panel (a) to the left and the supply curve in panel (c) to the left. 3. If the U.S. government's expenditures exceeded its receipts, it would likely A. lend money to a bank or other financial intermediary. B. borrow money from a bank or other financial intermediary. C. buy bonds from the public. D. sell bonds to the public. 4. Mortgage interest rates-the interest rates people pay to borrow money to purchase homes- are determined primarily in the market for A. short-run money. B. long-run money. C. loanable funds. D. currency exchange. 5. Wilma is considering expanding her dress shop and borrowing the funds to do it. If interest rates rise, she is A. less likely to expand. This illustrates why the supply curve slopes downward in the loanable- funds market. B. more likely to expand. This illustrates why the supply curve slopes upward in the loanable- funds market. C. less likely to expand. This illustrates why the demand curve slopes downward in the loanable-funds market D. more likely to expand. This illustrates why the demand curve slopes upward in the loanable funds market.

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The detailed answer for the above question is provided below Answer 1 D All of the answers above are ... View the full answer