If the supply of loanable funds increases, what is the result for the

1.On the market for loanable funds, if the interest rate were lower than the equilibrium level: 选项：A．the quantity of loanable funds supplied would be less than the quantity of loanable funds demanDB．there would be a shortage of loanable funds．C．lenders have an incentive to raise the interest rate they chargeD．all of these are correct．

2.If the demand for loanable funds shifts right, then选项： A: the real interest rate and the equilibrium quantity of loanable funds both fall.; B:the real interest rate falls and the equilibrium quantity of loanable funds rises.; C:the real interest rate and the equilibrium quantity of loanable funds both rise.; D:the real interest rate rises and the equilibrium quantify of loanable funds falls.

4.In the loanable funds market, if the interest rate is above the equilibrium level 选项： A、there is a shortage of loanable funds. B、there is a surplus of loanable funds. C、expected profit falls. D、government expenditure decreases.

5.In the loanable funds market, an increase in ________. 选项： A、the real interest rate increases the demand for loanable funds B、expected profit increases the demand for loanable funds C、expected profit doesn’t change the demand for loanable funds, but the quantity of loanable funds demanded increases D、the real interest rate doesn’t change the demand for loanable funds, but the quantity of loanable funds demanded increases

6.Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then 选项： A、prices rise and inflation occurs. B、there is a surplus of loanable funds. C、there is a shortage of loanable funds. D、there is neither a shortage nor surplus of loanable funds.

7.What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income? 选项：A、The supply of loanable funds would shift rightward and investment would increase. B、The supply of loanable funds would shift leftward and investment would decrease. C、The demand for loanable funds would shift rightward and investment would increase. D、The demand for loanable funds would shift leftward and investment would decrease.

8.Which of the following would necessarily increase the equilibrium interest rate? ( )选项： A:The demand for and the supply of loanable funds shift right.; B:The demand for and the supply of loanable funds shift left.; C:The demand for loanable funds shifts right and the supply of loanable funds shifts left.; D:The demand for loanable funds shifts left and the supply of loanable funds shifts right.

9.Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate ________ and the quantity of loanable funds ________. 选项： A、falls; decreases B、falls; increases C、rises; increases D、rises; decreases

10. Suppose the market for loanable funds is in equilibrium. If disposable income increases, the equilibrium real interest rate ________ and the quantity of loanable funds ________. 选项： A、 falls; increases B、 falls; decreases C、 rises; decreases D、 rises; increases

11.111) In the loanable funds market, if the interest rate is above the equilibrium levelA) there is a shortage of loanable fundsB)there is a surplus of loanable fundsC) expected profit falls.D) government expenditure decreases

12.An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded. 选项： A、increases; increases B、increases; decreases C、decreases; increases D、decreases; decreases

The federal government in the United States has been running very large budget deficits. Suppose that Congress and the president take actions that turn the budget deficits into budget surpluses. The graph for the loanable funds market can be used to illustrate the effect of the budget surpluses. The graph shows the market for loanable funds, with the demand curve for loanable funds, D and the supply curve of loanable funds, S . The loanable funds market is initially in equilibrium at point A.

As a result of the federal budget surplus, how will the supply of loanable funds shift? What will happen to the real interest rate and loanable funds in equilibrium?_________

Then, suppose that households believe that surpluses will result in Congress and the president cutting taxes in the near future in order to move from budget surpluses to balanced budgets. As a result, households increase their consumption spending in anticipation of paying lower taxes. As a result of the increase in household spending, how will the supply of loanable funds shift? What will happen to the real interest rate and loanable funds in equilibrium?_________

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The federal government in the United States has been running very large budget deficits. Suppose that Congress and the president take actions that turn the budget deficits into budget surpluses. The graph for the loanable funds market can be used to illustrate the effect of the budget surpluses. The graph shows the market for loanable funds, with the demand curve for loanable funds, D and the supply curve of loanable funds, S . The loanable funds market is initially in equilibrium at point A.

As a result of the federal budget surplus, how will the supply of loanable funds shift? What will happen to the real interest rate and loanable funds in equilibrium?_________

Then, suppose that households believe that surpluses will result in Congress and the president cutting taxes in the near future in order to move from budget surpluses to balanced budgets. As a result, households increase their consumption spending in anticipation of paying lower taxes. As a result of the increase in household spending, how will the supply of loanable funds shift? What will happen to the real interest rate and loanable funds in equilibrium?_________

14.If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, then ________. 选项： A、the real interest rate will rise B、firms will decrease their investment demand C、people will save more D、the real interest rate will fall

15.In the market for loanable funds, the interaction of the demand for, and supply of, loanable funds determines the equilibrium level of选项： A:the inflation rate.; B:gross domestic product.; C:the real interest rate.; D:the nominal interest rate.

16.[ch26]If taxes are reduced with no change in government spending, and people save all the money from the tax cut, ( ) 选项：A:a.the demand for loanable funds will increase and the interest rate will increase. B:b.the demand for loanable funds will increase and the interest rate remain constant. C:c.the supply of loanable funds will increase and the interest rate will decrease. D:d.neither the demand nor the supply of loanable funds will change.

17.The table shows an economy’s demand for loanable funds and the supply of loanable funds schedules, when the government’s budget is balanced.Real interest rate (percent per year)Loanable funds demanded(trillions of 2005 dollar)Loanable funds supplied(trillions of 2005 dollar)49.5458.5567.5676.5785.5894.59103.510Suppose that the government has a budget surplus of $1 trillion. The quantity of investment is $( ) trillion.

18.In the loanable funds framework, the ________ curve of bonds is equivalent to the ________ curve of loanable funds. 选项： A: demand; demand B: demand; supply C: supply; supply D: supply; equilibrium

19.The table shows an economy’s demand for loanable funds and the supply of loanable funds schedules, when the government’s budget is balanced.Real interest rate (percent per year)Loanable funds demanded(trillions of 2005 dollar)Loanable funds supplied(trillions of 2005 dollar)49.5458.5567.5676.5785.5894.59103.510Suppose that the government has a budget deficit of $2 trillion. The quantity of investment is ( ).

20.A increase in disposable income ________. 选项： A、has no effect on the supply of loanable funds curve B、shifts the supply of loanable funds curve rightward C、shifts the supply of loanable funds curve leftward D、results in movement up the supply of loanable funds curve

21. In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises? 选项： A、 Nothing; the economy would remain at point a B、 There would be a movement to a point such as b on supply of loanable funds curve SLF0. C、 The supply of loanable funds curve would shift rightward to a curve such as SLF2. D、 The supply of loanable funds curve would shift leftward to a curve such as SLF1.

22.When the real interest rate increases, 选项： A、the supply of loanable funds curve shifts rightward. B、the supply of loanable funds curve shifts leftward. C、there is a movement upward along the supply of loanable funds curve. D、there is a movement downward along the supply of loanable funds curve.

23.A decrease in disposable income shifts the ________. 选项： A、demand for loanable funds curve rightward B、demand for loanable funds curve leftward C、supply of loanable funds curve leftward D、supply of loanable funds curve rightward

24.【单选题】If we were to change the interpretation of the term “loanable funds” in such a way that government budget deficits would affect the demand for loanable funds, rather than the supply of loanable funds, then