8. Large budget deficits will likely

a. increase the nation's pool of saving

b. decrease the nation's pool of saving

c. have no impact on the nation's pool of saving

d. improve the nation's trade balance

ANSWER: B

POINTS: 0 / 1

9. The supply curve of loanable funds is

a. upward-sloping, reflecting the fact that savers need a higher rate of interest to coax them

into lending more

b. downward-sloping, reflecting the fact that savers will increase their supply for loanable

funds at lower rates of interest

c. upward-sloping, reflecting the fact that savers will increase their saving at lower rates of

interest

d. None of the above

ANSWER: A

POINTS: 0 / 1

10. Loanable funds are

a. the money in banks and other financial institutions

b. the amount of credit available

c. equal to the total value of capital in the economy

d. available only to businesses

ANSWER: B

POINTS: 0 / 1

11. If the market for loanable funds is not in equilibrium, which of the following factors must change to bring it to equilibrium? a. output

b. profits

c. the inflation rate

d. the interest rate

ANSWER: D

POINTS: 0 / 1

12. In the market for loanable funds