Question

In: Economics

1. Net capital inflow equals: A. consumption B. consumption plus government spending C. national savings D....

1. Net capital inflow equals:

A. consumption

B. consumption plus government spending

C. national savings

D. imports minus exports

2. If there is an increase in the government budget deficit, the ____ loanable funds will____, interest rate will____, and the amount of borrowing will_____

A. supply of; increase; decrease; increase

B. demand for; increase; increase; increase;

C. demand for; decrease; decrease; decrease;

D. supply of; decrease; increase; decrease

3. Explain the effect on a company's stock price today of the following event, other things held constant.

Several companies in the same sector announce surprisingly higher sales.

A. The stock price will not change

B. The stock price will rise

C. The stock price will fall.

Expert Solution

Answer:

1]

Net capital inflow equals: imports minus exports

Correct option D] imports minus exports

Explanation: Capital inflow means the amount of money increases which is available from foreign sources for the purchase of local capital assets.Net Capital inflow is the difference between import and exports of the nation.

2]

If there is an increase in the government budget deficit, the supply of loanable funds will decrease, interest rate will increase, and the amount of borrowing will decrease.

Correct answer: D. supply of; decrease; increase; decrease

3]

Several companies in the same sector announce surprisingly higher sales.

Correct answer: B. The stock price will rise

Higher sales in the same Sector means a bright future and the sector is doing well These higher sales would convert into higher profits eventually . And the stock prices are based in future expectation, so the stock prices increase .

Rahul Sunny answered 1 year ago

12b) Personal Income = Consumption + ? a) Exports b) Savings c) Capital d) Investment 12c)Fill...

12b) Personal Income = Consumption + ? a) Exports b) Savings c) Capital d) Investment 12c)Fill in the blanks Even though Savings isn't in the GDP formula directly: GDP = C + I + NX + G, it can have a long-term benefit to the economy by indirectly affecting the efficacy of all those terms for a long period of time._______________(true, false). We are still benefiting from the past savings and spending of others from 100+ years ago.________________(true, false).

1 Net National Income equals Gross National Income minus A changes in inventories. B imports. C...

1 Net National Income equals Gross National Income minus A changes in inventories. B imports. C inventories. D exports. E depreciation. 2 Export growth in Canada will help increase Canadian GDP because A exports are subtracted from imports when calculating GDP. B growth in exports indicates a decline in imports. C exports are added to imports when calculating GDP, causing GDP to increase. D an increase in exports will increase net exports, assuming no change in imports. E exports are...

in an open economy national saving equals domestic invest,ent plus net capital outflow. true or false

Aggregate expenditure equals: A) Consumption + Investment + Government purchases + Transfers B) Consumption + Investment...

Aggregate expenditure equals: A) Consumption + Investment + Government purchases + Transfers B) Consumption + Investment + Government purchases + Net exports C) Consumption + Investment + Federal government purchases + Exports D) Consumption + Government purchases – Net exports As the real interest rate rises: I. consumption rises. II. net exports fall. III. investment rises. A) II only B) I only C) I and III D) III only When the real interest rate rises in the United States, there...

Which COMPONENT(S) (if any) of U.S. GDP (consumption C, investment I, government spending G, and/or net...

Which COMPONENT(S) (if any) of U.S. GDP (consumption C, investment I, government spending G, and/or net exports NX) THIS YEAR would be affected and how (INCREASE or DECREASE) if: (i) The government increases the monetary transfers to the poor. (j) A friend of yours buys some illegal drugs. (k) Taylor Swift releases a new single (assume nobody has bought it yet). (l) You buy a new car that you use to drive to college.

Net capital spending is equal to: ending net fixed assets minus beginning net fixed assets plus...

Net capital spending is equal to: ending net fixed assets minus beginning net fixed assets plus depreciation. ending total assets minus beginning total assets plus depreciation. ending net fixed assets minus beginning net fixed assets minus depreciation. beginning net fixed assets minus ending net fixed assets plus depreciation.

In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net...

In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net export spending total $250 billion, and the MPS is 0.25, what will unplanned changes in inventory be when output is $1.010 trillion? $4 billion –$4 billion –$5 billion $5 billion If real output is currently less than the natural level of real output, which of the following will result from an increase in aggregate demand? It will make the current recessionary gap smaller. It...

Consumption 400 Capital gains on external wealth -11 Government spending 80 Capital gains on domestic capital...

Consumption 400 Capital gains on external wealth -11 Government spending 80 Capital gains on domestic capital stock 6 Gross national expenditure 630 Exports of financial assets 200 National saving 315 Imports of financial assets 355 Net unilateral transfers 5 The above table represents annual data for Smyrna during 2017. The values are in millions of dollars. Answer the following questions accordingly. What is the change in domestic wealth Smyrna experienced during 2017? What is the current account balance of Smyrna...

Using the Spending Approach, determine whether each of the following is Consumption, Investment, Government Purchases, Net...

Using the Spending Approach, determine whether each of the following is Consumption, Investment, Government Purchases, Net Exports, or not included in GDP, and briefly explain why. (a) A yoga studio purchases new yoga mats and straps. (b) An individual purchases a new yoga mat and straps for their home practice. (c) Someone receives a stimulus check from the government in the mail during COVID-19. (d) A public high school purchases new textbooks for its students. (e) A campus bookstore increases...

1. Monetary policy refers to a. government taxing b. Government spending c. Federal reserve manipulating the...

1. Monetary policy refers to a. government taxing b. Government spending c. Federal reserve manipulating the money supply d. Federal reserve printing money 2. Which of the following would shift the long run aggregate supply curve to the left? a. Decrease in consumption b. Decrease in resources 3. In the short run, aggregate demand in a country will decrease if there is a decrease in the a. tax rate in the country b. money supply c. factors of production d....