Use the Following to Answer Question

question 181

Multiple Choice

Use the following to answer question:
-(Figure: The Production Possibilities for Two Countries) Use Figure: The Production Possibilities for Two Countries.If Indonesia and Malaysia trade 1 microchip for 1.5 tires,the most that Indonesia can consume is _____ microchips and _____ tires,while the most that Malaysia can consume is _____ microchips and _____ tires.

• A)300;600;800;200
• B)1,200;400;800;200
• C)400;600;1,200;600
• D)600;600;600;600

Understand the components and calculations involved in determining the quantity of loanable funds in a closed economy.

Analyze the effects of changes in interest rates on the supply and demand for loanable funds.

Identify the factors influencing private and public saving within the closed and open economy models.

Explain the relationship between government budget deficits/surpluses and their impact on national saving and the loanable funds market.

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Definitions:

Bond Financing

A method of raising capital through the issuance of bonds which are to be repaid at a specified maturity date along with periodic interest payments.