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What is its supply of loanable funds

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Reference no: EM131348676

Suppose a recession in Europe reduces U.S. net exports at every price level. Which of the following would you expect to occur in the U.S. as a result of this change?

  • In the short run, unemployment will increase and inflation will fall.
  • In the short run, unemployment will increase and inflation will rise.
  • In the short run, unemployment will decrease and inflation will rise.
  • In the short run, unemployment will decrease and inflation will fall.

Which of the following is NOT required for paper dollars to work as a medium of exchange?

  • An established and regulated system of fiat money
  • Intrinsic value backed by gold
  • Government prosecution of counterfeiters
  • Acceptance as part of social convention

A country has private saving of $500 billion, public saving of -$100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. What is its supply of loanable funds?

  • $650 billion
  • $600 billion
  • $400 billion
  • $350 billion

Reference no: EM131348676

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