Roderick_April_Unit 5 Homework_BU20405

Roderick_April_Unit 5 Homework_BU20405 - Unit 9 #5 A. Then...

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Unit 5 Homework Unit 8 #7 By increasing technology we have made physical capital, increase a person can put out more than before, and human capital, we have more people in the work force and natural resources such as land to cultivate so these are the roles for long run economic growth of aggregated output per capita. #8 They have made people trust the banks so people will put money in them so the banks can turn it into productive investment spending. They also take in more taxes than what they spend, so more funds are available for investments spending. They have good laws, institutions that enforce those laws and a stable political system to keep from people taking what is not theirs. Large borrowing by the government, will “crowds out” private investment spending.
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Unformatted text preview: Unit 9 #5 A. Then the private savings would stay the increase, private investment will increase and interest rates will increase. B. Then the private savings would stay the decrease, private investment will increase and interest rates will increase. C. Then the private savings would stay the decrease, private investment will decrease and interest rates will increase. #7 The supply of loanable funds is in balance with the demand for loanable funds. There is neither surplus of loanable funds or a shortage of loanable funds, so those who want loans can get them and those who want to save will save, that maximizes efficiency....
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This note was uploaded on 08/05/2008 for the course BU 204-05 taught by Professor Hill during the Spring '08 term at Kaplan University.

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