Homework Answers
An increase in the demand for loans will increase interest rates. The banks would increase the amount of loans and increase the interest rate.
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The current economy is strong and many people are feeling confident about their future and ability...
The current economy is strong and many people are feeling confident about their future and ability...
The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes Using the four step process with this type of market, what will banks most likely do with their loans? They would increase the supply of loans and decrease the interest rate. They would increase the quantity supplied of...
Question4 1 pts The current economy is strong and many people are feeling confident about their...
Question4 1 pts The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars renovating their homes, or buying new homes. Using the four step process with this type of market, what will banks most likely do with their loans? They would increase the quantity supplied of loans and increase the interest rate. O They would...
The current economy is strong and many people are feeling confident about their future and ability...
The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes. Using the four step process with this type of market, what will banks most likely do with their loans? They would to decrease the quantity supplied of loans and decrease the interest rate. They would increase the supply...
What is the term for the record of all foreign purchases or assets in the domestic...
What is the term for the record of all foreign purchases or assets in the domestic economy and domestic purchases of assets abroad? a. the current account b. the net secondary income c. the balance of trade d. the capital account Which of the following would cause a decrease in the exchange rate of the Canadian dollar? a. a decrease in the amount of foreign debt purchased by Canadian citizens b. an increase in Canadian imports c. an increase in...
Which of the following factors pose a limit on the ability of commercial banks to increase...
Which of the following factors pose a limit on the ability of commercial banks to increase the quantity of money in circulation by extending new loans? Select one or more: a. the quantity of Central Bank reserves that they own b. the quantity of money that savers lent to them by opening deposits c. the behavior of households and firms, which reduce the quantity of money in circulation by repaying previous loans. d. the availability of profitable lending opportunities in...
1. The interest rate in the federal funds market: a. is an interest rate that is...
1. The interest rate in the federal funds market: a. is an interest rate that is largely unaffected by the policies of the Fed. b. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. c. is determined by the imposition of price controls imposed by the Fed. d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. 2. If there is a...
If an economy has aggregate price levels that are increasing, but the wage rate stays the...
If an economy has aggregate price levels that are increasing, but the wage rate stays the same because of downward wage stickiness, what would be the economic consequences? New businesses would enter the economy, hire employees and as a consequence the quantity of real GDP supplied would increase. Business would fire some employees as labor becomes too expensive and the quantity of real GDP supplied would decrease. Business would need to hire more employees and the quantity of real GDP...
homework help question 23 please !! 106 Predict how each of the following economic 30. changes...
homework help question 23 please !!
106 Predict how each of the following economic 30. changes will affect the equilibrium price and quantity in i the financial market for home loans. Sketch a demand asstneh and supply diagram to support your answers. a. The number of people at the most common ages for home-buying increases. b. People gain confidence that the economy is growing and that their jobs are secure. c. Banks that have made home loans find that a...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity,...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity, z', to decrease. Using the New Keynesian Model framework, what are the implications on the following outcomes. For the money market, use the framework with interest rates on the vertical axis. f) Wages (increase / decrease / indeterminate / no change)? g) Money supply increase / decrease / indeterminate / no change)? h) Money demand increase / decrease / indeterminate / no change)? i)...
of a closed economy. when 6. According to the classical long-run macroeconomic model of a co...
of a closed economy. when 6. According to the classical long-run macroeconomic model of a co decrease and government spending is unchanged a consumption and investment both increase b. consumption and investment both decrease c consumption increases and investment decreases d. consumption decreases and investment increases. 7. Suppose a business-friendly billionaire becomes president. As a result, businesses become optimistic about the future and more eager than before to increase their investment spending According to the classical long-run macroeconomic model of...
The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes Using the four step process with this type of market, what will banks most likely do with their loans? They would increase the supply of loans and decrease the interest rate. They would increase the quantity supplied of...
Question4 1 pts The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars renovating their homes, or buying new homes. Using the four step process with this type of market, what will banks most likely do with their loans? They would increase the quantity supplied of loans and increase the interest rate. O They would...
homework help question 23 please !!
106 Predict how each of the following economic 30. changes will affect the equilibrium price and quantity in i the financial market for home loans. Sketch a demand asstneh and supply diagram to support your answers. a. The number of people at the most common ages for home-buying increases. b. People gain confidence that the economy is growing and that their jobs are secure. c. Banks that have made home loans find that a...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity, z', to decrease. Using the New Keynesian Model framework, what are the implications on the following outcomes. For the money market, use the framework with interest rates on the vertical axis. f) Wages (increase / decrease / indeterminate / no change)? g) Money supply increase / decrease / indeterminate / no change)? h) Money demand increase / decrease / indeterminate / no change)? i)...
of a closed economy. when 6. According to the classical long-run macroeconomic model of a co decrease and government spending is unchanged a consumption and investment both increase b. consumption and investment both decrease c consumption increases and investment decreases d. consumption decreases and investment increases. 7. Suppose a business-friendly billionaire becomes president. As a result, businesses become optimistic about the future and more eager than before to increase their investment spending According to the classical long-run macroeconomic model of...
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