problems ch8

problems ch8 - Question 1 0 out of 1 points 2. Indicate in...

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Question 1 0 out of 1 points 2. Indicate in the space to the right of each of the following events whether the event will tend to increase (+) or decrease (-) the saving schedule, or cause no shift of the schedule at all (none). a. Development of consumer expectations that prices will be higher in the future (+, -, none) [a] b. Gradual shrinkage in the quantity of real assets owned by consumers (+, -, none) [b] c. Increase in the volume of consumer indebtedness (+, -, none) [c] d. Growing belief that disposable income will be lower in the future (+, -, none) [d] e. Expectations that there will be a current shortage of consumer goods (+, -, none) [e] f. Rise in the actual level of disposable income (+, -, none) [f] g. An increase in the value of financial assets owned by consumers (+, -, none) [g] h. Development of a belief by consumers that the Federal government can and will prevent recessions in the future (+, -, none) [h]
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Specified Answer for: a + Specified Answer for: b - Specified Answer for: c - Specified Answer for: d none Specified Answer for: e + Specified Answer for: f - Specified Answer for: g + Specified Answer for: h none Correct Answers for: a - Correct Answers for: b + Correct Answers for: c - Correct Answers for: d + Correct Answers for: e - Correct Answers for: f none Correct Answers for: g - Correct Answers for: h -
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Question 2 0 out of 1 points 3 (Part 1). The following schedule has eight different expected rates of return, and the dollar amounts of the investment projects expected to have each of these return rates. a. If the real rate of interest in the economy were 18%, business firms would plan to spend $ [a] billion for investment, but if the real interest rate were 16%, they would plan to spend $ [b] billion for investment. b. Should the real interest rate be 14%, they would still wish to make the investments they were willing to make at real
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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problems ch8 - Question 1 0 out of 1 points 2. Indicate in...

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