Exam 2

Question 1

When a country saves a larger portion of its GDP than it did before, it will have

Answer 1

?

Question 2

how do you tell if a government invent will raise the interest rate?

Answer 2

If you look the national savings equation S= (y-t-c)

Question 3

Institutions that help to match one person’s saving with another person’s investment are collectively called the

Answer 3

financial systems

Question 4

mutual funds and banks are part of what?

Answer 4

institutions that are called financial intermediaries

Question 5

What are stock and bond markets apart of ?

Answer 5

institutions called Financial markets through which SAVERS directley provide funds to the borrowers.

Question 6

a bond buyer is a

Answer 6

saver

Question 7

four expenditures of GDP

Answer 7

personal consumption, government expenditures, net exports and, investments

Question 8

how do I determine real interest rate?

Answer 8

nominal interest rate - inflation(expected or actual)