经济学原理对应练习 Ch 26.docVIP

Chapter 26 Saving, Investment, and the Financial System Multiple Choice 1. When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these expenditures a. capital investment. b. investment in human capital. c. business consumption expenditures. d. None of the above is correct. ANS: A PTS: 1 DIF: 1 REF: 26-1 TOP: Investment MSC: Interpretive 2. When a country saves a larger portion of its GDP, it will have a. more capital and higher productivity. b. more capital and lower productivity. c. less capital and higher productivity. d. less capital and lower productivity. ANS: A PTS: 1 DIF: 1 REF: 26-1 TOP: Investment MSC: Definitional 3. Institutions in the economy that help to match one persons saving with another persons investment are collectively called the a. Federal Reserve system. b. banking system. c. monetary system. d. financial system. ANS: D PTS: 1 DIF: 1 REF: 26-1 TOP: Financial system MSC: Definitional 4. Lekeishas income exceeds her expenditures. Lekeisha is a a. saver who demands money from the financial system. b. saver who supplies money to the financial system. c. borrower who demands money from the financial system. d. borrower who supplies money to the financial system. ANS: B PTS: 1 DIF: 2 REF: 26-1 TOP: Supply of loanable funds MSC: Definitional 5. Which of the following is not correct? a. When a country saves more, it has more capital. b. A supplier of loanable funds borrows money. c. The interest rate adjusts to balance the quantity supplied of and the quantity demanded of loanable funds. d. If Mary buys equipment for her factory, Mary is engaging in capital investment. ANS: B PTS: 1 DIF: 1 REF: 26-1 TOP: Investment | Capital | Market for loanable funds MSC: Definitional 6. Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a a. saver who demands money from the financial system. b. saver who supplies money to the financial system. c. b