Question

How might expectations of lower global oil prices affect the demand for loanable funds, the supply...

How might expectations of lower global oil prices affect the demand for loanable funds, the supply of loanable funds, and interest rates in the United States? Will this affect the interest rates of other countries in the same way? Explain

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Lower Global Prices means lower imports hence demand for loanable fund will decrease however the supply of loanable funds would increase.
This would decrease the interest in US.

Interest rates in all countries except oil exporting countries will decrease because mosr countries are oil importing . Decrease in exports value of oil exporting countries will reduce shortage of loanable fund hence interest rate will increase in oil exporting countries.

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well

Add a comment
Know the answer?
Add Answer to:
How might expectations of lower global oil prices affect the demand for loanable funds, the supply...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • In Freedonia, there is a supply and demand for loanable funds. Suddenly, consumer confidence decreases. This...

    In Freedonia, there is a supply and demand for loanable funds. Suddenly, consumer confidence decreases. This decrease causes consumers to spend less of their income on goods and services. At the same time, firms’ demand for loanable funds increases due to expectations of the future. What happens to interest rates, the quantity of loanable funds, Investment, and GDP? Use graphs to explain when possible.

  • Chapter 1 page 23 Questions: 1.4.11.12,13,14 1. Explain the meaning of surplus units and deficit units....

    Chapter 1 page 23 Questions: 1.4.11.12,13,14 1. Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a deficit unit in your relationship with each financial institution ANSWER 2. Explain the primary use of funds for commercial banks versus savings institutions. ANSWER 3. With regard to the profit motive, how are credit unions different from other financial...

  • Show how a decrease in the supply of loanable funds and an increase in the demand...

    Show how a decrease in the supply of loanable funds and an increase in the demand for loanable funds can raise the real interest rate and leave the equilibrium quantity of loanable funds unchanged. Draw a demand for loanable funds curve. Label it DLF0. Draw a supply of loanable funds curve. Label it SLF0. Draw a point at the equilibrium real interest rate and quantity of loanable funds. Label it 1. Now draw a curve that shows an increase in...

  • Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds...

    Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds by a large country can result fall in interest rates Ono change in interest rates O an increase in the interest rate Onone of the answers are correct if wealth increases the loanable funds supply curve shifts to the right true false If you expect prices to continue to fall since they have been falling in the past three months, your are exhibiting adaptive...

  • 4. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy.

    4. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loan funds _______ is the source of the demand for loanable funds. As the interest rate falls, the quantity of loanable funds demanded _______  Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is _______ than...

  • 10. The sources of supply and demand for loanable funds Consider the market for loanable funds...

    10. The sources of supply and demand for loanable funds Consider the market for loanable funds in the United States. Which of the following are sources of the supply of loanable funds? Check all that apply. A- A household’s current after-tax income exceeds its utility-maximizing level of consumption. B- Government tax revenues exceed government spending. C- A firm’s profit-maximizing level of expenditures exceeds its profits in the current period. D- A government runs a budget deficit. E- A household’s utility-maximizing...

  • Question 2 (a) (i) Explain how each of the following events affect the supply of loanable...

    Question 2 (a) (i) Explain how each of the following events affect the supply of loanable funds curve: The economy is in a recession so people's disposable income is lower. (ii) The stock market is booming so the people's wealth is higher. (iii) Fewer college graduates are finding jobs so expected future income is lower. (iv) The real interest rate increases. (b) In the figure below, the initial supply of loanable funds curve is SLFO and the initial demand for...

  • 1. Indicate the sources of demand for loanable funds, and discuss the factors that affect the...

    1. Indicate the sources of demand for loanable funds, and discuss the factors that affect the demand for loanable funds. 2. What are the main sources of loanable funds? Indicate and briefly discuss the factors that affect the supply of loanable funds.

  • 4. Supply and demand for loanable funds alog The following graph shows the market for loanable...

    4. Supply and demand for loanable funds alog The following graph shows the market for loanable funds in a closed economy. The upward sloping range line represents the supply of loanable funds, and the downward sloping blue line represents the demand for loanable funds ters ans access Tips ccess Tips 10 FOR YOU Suppo Tools NTEREST RATL Pent ar Principles of wand edback 100 LOANABLE FUNDS INTEREST RATE (Percent) Demand . 100 200 300 400 500 600 700 80000 1000...

  • A decrease in the supply for loanable funds accompanied by an increase in demand will cause...

    A decrease in the supply for loanable funds accompanied by an increase in demand will cause interest rates to: o increase O decrease O stay the same O not enough information to tell

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT