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ECON-1012-B-Introduction to Macroeconomics

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If Northland is currently a net lender and a debtor nation, which of the following statements is correct?
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Which of the following events would lead to an appreciation of the Canadian dollar against the U.S. dollar?
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What does the law of one price state?

It states that
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What change occurs in the market for loanable funds when the real interest rate falls?
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If households' disposable income decreases, what happens in the market for loanable funds?
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What will happen in the loanable funds market when a country increases its budget surplus?

When the government increases its budget surplus, the supply of loanable funds ________, private saving ________, and investment ________.
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What is the change in the value of a firm's capital called?
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If households' disposable income increases, why does the real interest rate change?

Saving ________ and the real interest rate ________.
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How does an increase in the real interest rate influence the loanable funds market?
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Short Description: A line graph of real interest rate versus loanable funds. Long Description: The vertical axis is labelled, real interest rate (percent per year) and ranges from 0 to 4 in increments of 1. The horizontal axis is labelled, loanable funds (billions of 20 12 dollars) and ranges from 0 to 30 in increments of 5. The line for D L F slopes downward from the upper left corner to the lower right corner passing through the points (20, 3) and (25, 2). The line for S L F slopes upward from the lower left corner to the upper right corner passing through the point (25, 2). The line for P S L F slopes upward from the lower left corner to the upper right corner, parallel to the line for S L F on the top and passing through the points (15, 2) and (20, 3).

Figure 7.3.1

Refer to Figure 7.3.1, which shows the market for loanable funds. What impact has the government's budget had on the market outcome?
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