CH19PQ - Practice Questions Ch. 19 1. The open-economy...

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Practice Questions – Ch. 19 1. The open-economy macroeconomic model includes a. only the market for loanable funds. b. only the market for foreign-currency exchange. c. both the market for loanable funds and the market for foreign-currency exchange. d. neither the market for loanable funds or the market for foreign-currency exchange. 2. In the open-economy macroeconomic model, the market for loanable funds identity can be written as a. S = I b. S = NCO c. S = I + NCO d. S + I = NCO 3. If the quantity of loanable funds supplied is greater than the quantity demanded, then a. there is a shortage of loanable funds and the interest rate will fall. b. there is a shortage of loanable funds and the interest rate will rise. c. there is a surplus of loanable funds and the interest rate will fall. d. there is a surplus of loanable funds and the interest rate will rise. 4. Which of the following would make the equilibrium interest rate decrease and the equilibrium quantity of loanable funds increase? a. The supply of loanable funds shifts right.
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This note was uploaded on 08/04/2010 for the course ECO 2072 taught by Professor Whittle during the Spring '10 term at Southeaster Oklahoma State University.

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CH19PQ - Practice Questions Ch. 19 1. The open-economy...

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