Credit risk refers to a bond’s ?
A. Probability of default
B. Price-earnings ratio
C. dividend
D. tax treatment
An increase in the budget surplus ?
A. Shifts the supply of loanable funds to the left and increase the real interest rate
B. Shift the supply of loanable funds to the right and reduces the real interest rate.
C. Shifts the demand for loanable funds to the right and increases the real interest rate.
D. Shifts the demand for loanable funds to the left and reduces the real interest rate
A. Real interest rates rise and investment falls
B. Real interest rates rise and investment rises
C. Real interest rates fall and investment rises
D. Real interest rates fall and investment falls
An increase in the budget deficit is ?
A. an increase in public saving
B. a decrease in private saving
C. None of these answers
D. a decrease in public savings
An increase in the budget deficit will ?
A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment
Which of the following sets of government policies is the most growth oriented ?
A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
B. Increase tax on the returns to saving Provide investment tax credits and increase the deficit
C. Increase tax on the returns to saving Provide investment tax credits and lower the deficit
D. Lower taxes on the returns to saving Provide investment tax credits and increase the deficit