If saving exceeds investment the national income will ?

Related Mcqs:

1. National Saving (or just saving) is equal to ?

   A. none of these answers
   B. investment + consumption expenditures
   C. private saving + public saving
   D. GDP government purchases

2. The golden-rule saving rate is the rate of saving that ?

   A. gets the highest rate of interest
   B. maximizes the level of long-run investment
   C. maximizes the level of long-run consumption
   D. maximizes human capital

3. When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

   A. Cost push theory
   B. Supply and Demand theory
   C. Fundamental theory
   D. Ricardo’s theory

4. If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?

   A. intermediation
   B. equity finance
   C. crowding out
   D. the investment fund effect

5. Gross National income is always more than Net National income because it includes ?

   A. Foreign income
   B. Capital consumption allowance
   C. Indirect taxes
   D. Direct taxes

6. If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?

   A. Saving = Rs 300 investment = Rs 300
   B. Saving = Rs 200 investment = Rs 100
   C. Saving = Rs 100 investment = Rs 200
   D. Saving = Rs 0 investment = Rs 0

7. If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?

   A. a reduction in the budget deficit
   B. an increase in the budget deficit
   C. an investment tax credit
   D. None of the above

8. If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?

   A. the real interest rate should fall
   B. the real interest rate should rise
   C. the impact on the real interest rate is indeterminate
   D. the real interest rate should not change

9. Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?

   A. appreciation; trade surplus
   B. appreciation; trade deficit
   C. depreciation; trade surplus
   D. depreciation; trade deficit

10. If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?

    A. market imperfection
    B. the law of diminishing returns
    C. the paradox of thrift
    D. market failure