Do not answer 2, 4 or 5 since i don have the graphs

1.Equilibrium in loanable funds market is represented by which equation?

A)I=Y-C-G

B)Y=C+I+G

C)SPR=Y-C-T-TR

D)SPUB=T-G

2.Refer to the following graph: what can be said of the change depicted in the graph?

A.Technological innovation has increased the level of the MPK; the quantity of investement has increased

B.A decreased in taxes has increased the demand for investment: savings have also increased

C.Technological innovation has increased the level of MPK: the quality of investment is the same

D.A decrease in taxes has increased the demand for investment; savings remaining constant

3.Which of the following will shift the investment function?

A.An increase in income taxes and decrease in defense spending

B.A new investment tax credit and technological innovation

C.A decrease in taxes only

D.A and B

4.Refer to the following graph: if the federal government announces a policy provides better and more comprehensive training to recent graduates and current workers, which shift would we see?

a.A

b.B

c.C

d.D

5.Refer to the following graph: what type of change would shift the supply of loanable funds like this?

A.A decrease in taxes

B.An increase in federal education spending

C.An increase in taxes

D.An increase in government spending with an equal increase in taxes

6.Which equation represents equilibrium in the market for goods and services

A.Y = C + I + G

B.C = C - cTR + c(1-t)Y

C.R = (i/b) - (1/b)i

D.N/S = Y

7. Where does the demand for loanable funds come from?

A. Business fixed investment

B. Residential investment

C. Inventory investment

D. All of the above

8.Which is the variable that adjusts to equate the market for goods and services with the market for loanable funds?

A. Y

B. C

C. r

D. I

9. Refer to the following graph: How would the market move back to the equilibrium r0?

A. As savers buy bonds, the price of bonds rises and the interest rate increases

B. As saver buy bonds, the price on bonds rises and the interest rate decreases

C. Savers sell bonds, driving down the prices and the interest rate.

D. Savers sell bonds, driving down the prices, increase the interest rate

10. If the government decides to increase spending, which of the following occurs?

A. The government prints more money to spending, national savings increases because on the printing of money

B. The government has to raise taxes to fund the extra expenditure, private savings do not change

C. The government has to raise taxes to fund the extra expenditure, public savings do not change

D. The government borrows, withdrawing funds from the system, national savings decrease and the withdrawn funds drive the interest rate up