true/false explain When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.

Use the following graph to answer the next question. Price Level AD₂ AD₁ AD₂ Real GDP Which of the following factors will shift AD₁ to AD3? Multiple Choice O O a decrease in consumer wealth an increase in productivity an increase in expected returns on investment a decrease in real interest rates Saved < Prev 10 of 18 Ne MacBook Pro

The figure below depicts a typical individual's income and consumption paths over his or her lifetime. Use the list on the right to label the diagram. me consumption www Later Income path 8 Borrowing region c) Consumption path D) Dissaving region Saving region

________ Is that type of investment which is not affected by change in the level of output or income

In the market for loanable funds, the equilibrium interest rate is 3% and the equilirbium quantity of loanable funds is $500 billion.What's the likely result if bamks offer loans for an interest rate of 5%? a) the quantity of loans supplied by banks will be greater than the quantity of loans demanded from potential investors b) the government will issue more bonds to make up for the decreased number of loans c) there'll be an increase in borrowing d) the quantity of loanable funds demanded will increase

Which of the following questions would be studied in the area of microeconomics? Select one: a. What determines the number of hours an individual works? b. Do interest rates affect net exports? c. Will an increase in government spending cause inflation? d. What portion of total spending comes from households in the economy?

Answer the following questions: Instructions: Enter your answers rounded to the nearest whole number. a. By how much will GDP change if firms increase their investment by $12 billion and the MPC is 0.80? billion b. If the MPC is 0.50? %24 billion

Consider the market for loanable fund. Suppose that government started to give tax incentives for investment (so the cost of investment fell.) Answer which curve (Demand or Supply) would shift to which direction (Left or Right), and answer how the equilibrium saving would change (Decrease or Increase)Curve: Direction: Saving:

No written by band solution

Saving = a. disposable income minus taxes b. income minus taxes c. 1 – MPC d. disposable income minus consumption