Homework Answers
Answer
Option A
i=3%
Qd=500 million and Qs=180 million
Shortage =Qd-Qs
=500-180
=$320 million
the shortage is $320 million
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Use the following to answer question 16: Figure: Loanable Funds Market 6% 4.5% 180 250 500...
1:47 PM cdn.fbsbx.com l MetroPCS SHARE Refer to the graph to answer the toowing questions $200...
1:47 PM cdn.fbsbx.com l MetroPCS SHARE Refer to the graph to answer the toowing questions $200 $250 $300savid In the figure, line 2 represents theand at an interest rate of 6 percent a of loanable funds exists. quantty supplied of loanable funds; surplus demand of loanable funds; surplus demand for loanable funds; shortage O supply of loanable funds, shortage quantity demanded of loanable funds surplus Question 45 2 pts Refer to he graph to answer the toowing questions Assuming the...
6. Suppose there is a surplus in the market for loanable funds. Is the interest rate...
6. Suppose there is a surplus in the market for loanable funds. Is the interest rate above or below its equilibrium level? How do saving and investment at this interest rate be compared? Which one is greater? 7. If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen...
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...
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...
3) Consider the loanable funds market. Use the following supply and demand equations to answer the...
3) Consider the loanable funds market. Use the following supply and demand equations to answer the questions below. Assume that r is measured as a percentage and Q is the quantity of loans measured in billions. r = 20 -.006Q" r= .5+.004QS a) Assume that T-G = 0, find the equilibrium interest rate and quantity of loans. b) Show equilibrium graphically, label all axes and intercepts. c) Suppose that T-G= -600 and the government borrows the entire amount domestically. Find...
The following graph shows the market for loanable funds in a closed economy.
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 loanable funds. Saving is the source of the supply of loanable funds. As the real interest rate rises, the quantity of loanable funds demanded decreases Suppose the real interest rate is 7%. In this case, the quantity of loanable funds supplied is greater than the quantity of loans...
Table shows the initial market for loanable funds in Econland. There is no Ricardo-Barro effect. If...
Table shows the initial market for loanable funds in Econland. There is no Ricardo-Barro effect. If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium has a real interest rate of and quantity of loanable funds traded equal to Real interest rate Demand for Loanable Funds Supply of Loanable Funds (5 billions) (5 billions) 3% 160 40 4% 140 60 5% 120 80 100 100 80 120 8% 140 6% 7% A.5 percent;...
If equilibrium for interest rate is 8% and a bank is offering loans at 5% then...
If equilibrium for interest rate is 8% and a bank is offering loans at 5% then what will occur based on the supply and demand model? Group of answer choices A. there will be a surplus of loanable funds B. there will be a shortage of loanable funds C. the demand for loanable funds will equal the supply of loanable funds D. the demand for loanable funds will be less than the supply of loanable funds Which of the following...
3. For each of the following, draw the loanable funds market and use it to determine...
3. For each of the following, draw the loanable funds market and use it to determine what happens to the equilibrium interest rate. a. Household time preferences increase (they become less patient). b. Demographic composition of the society shifts towards people ages 24-44. c. Technological breakthrough increases productivity of physical capital. d. Decrease in the business optimism and confidence.
3. Supply and demand for loanable funds Aa Aa The following graph shows the market for...
3. 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 loanable funds.Investment is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied increases. Suppose the interest rate is 7%. In this case, the quantity of loanable funds supplied is greater than the quantity of...
1:47 PM cdn.fbsbx.com l MetroPCS SHARE Refer to the graph to answer the toowing questions $200 $250 $300savid In the figure, line 2 represents theand at an interest rate of 6 percent a of loanable funds exists. quantty supplied of loanable funds; surplus demand of loanable funds; surplus demand for loanable funds; shortage O supply of loanable funds, shortage quantity demanded of loanable funds surplus Question 45 2 pts Refer to he graph to answer the toowing questions Assuming the...
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...
3) Consider the loanable funds market. Use the following supply and demand equations to answer the questions below. Assume that r is measured as a percentage and Q is the quantity of loans measured in billions. r = 20 -.006Q" r= .5+.004QS a) Assume that T-G = 0, find the equilibrium interest rate and quantity of loans. b) Show equilibrium graphically, label all axes and intercepts. c) Suppose that T-G= -600 and the government borrows the entire amount domestically. Find...
Table shows the initial market for loanable funds in Econland. There is no Ricardo-Barro effect. If the government moves from a balanced budget to a surplus of $20 billion, the new equilibrium has a real interest rate of and quantity of loanable funds traded equal to Real interest rate Demand for Loanable Funds Supply of Loanable Funds (5 billions) (5 billions) 3% 160 40 4% 140 60 5% 120 80 100 100 80 120 8% 140 6% 7% A.5 percent;...
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