Homework Answers
a. Falls, reduced, appreciation
Increase in government spending decreases supply of loanable funds that lesds to increase in interest rate. Higher interest rate attracts higher level of capital inflow that increases the value of currency.
Add Answer to:
The government in an open economy increases spending. As a result, the supply of loanable funds...
2. An appreciation of a nation's currency can be the result of which of the folowing?...
2. An appreciation of a nation's currency can be the result of which of the folowing? a. an increase in net exports b. a decrease in net exports c. a fal in national saving d. a decrease in domestic demand for investment 3. The government n an open economy increases spending. As a resut, the supply of loanable funds from national saving_ leading to an). . net capital outflow and a real exchange rate / a. fals, reduced, appreciation b....
In a large open economy, what is the source of the domestic supply of loanable funds?...
In a large open economy, what is the source of the domestic supply of loanable funds? A. Net capital outflow B. National saving and investment C. National saving D. Investment
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate...
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. An appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national...
In an open economy, the source of the demand for loanable funds is Group of answer...
In an open economy, the source of the demand for loanable funds is Group of answer choices investment + the government budget deficit investment + net capital outflow national saving + net capital outflow national saving
What are the effects of an increase in the supply of loanable funds? Select one: Net...
What are the effects of an increase in the supply of loanable funds? Select one: Net capital outflow and the real exchange rate both decrease. Net capital outflow decreases, and the real exchange rate increases. Net capital outflow and the real exchange rate both increase. Net capital outflow increases, and the real exchange rate decreases.
3. E ffects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domesti...
3. Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol)...
14. Consider the open-economy loanable funds model with flexible prices and capital mobility. Suppose that the...
14. Consider the open-economy loanable funds model with flexible prices and capital mobility. Suppose that the world consists of a small open economy (we call this domestic) and the rest of the world (we call this foreign). Answer the following questions with the aid of figures where appropriate a. How does an increase in domestic government expenditure affect trade balance and real exchange rate? (2 points] b. How does an increase in foreign government expenditure affect the trade balance and...
In the open-economy macroeconomic model, if the supply of loanable funds shifts right Group of answer...
In the open-economy macroeconomic model, if the supply of loanable funds shifts right Group of answer choices the interest rate falls and the supply of dollars in the market for foreign-currency exchange shifts right. the interest rate falls and the supply of dollars in the market for foreign currency exchange shifts left. the interest rate rises and the demand for dollars in the market for foreign currency exchange shifts right. the interest rate rises and the demand for dollars in...
which of the following statements about the loanable funds market is (are) correct? (x) When the...
which of the following statements about the loanable funds market is (are) correct? (x) When the supply of loanable funds shifts to the right then the equilibrium real interest rate decreases and the equilibrium quantity of loanable funds decreases. (y) When the demand for loanable funds shifts to the right then the equilibrium real interest rate increases and the equilibrium quantity of loanable funds increases. (z) If the demand for loanable funds shifts to the right and the supply of...
The market for loanable funds and government policy
The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. (Note: You will not be graded on any changes you make to the graph.)DemandSupplyINTEREST RATE (Percent)LOANABLE FUNDS (Billions of dollars)Demand Supply Registered retirement savings plans (RRSPs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is...
2. An appreciation of a nation's currency can be the result of which of the folowing? a. an increase in net exports b. a decrease in net exports c. a fal in national saving d. a decrease in domestic demand for investment 3. The government n an open economy increases spending. As a resut, the supply of loanable funds from national saving_ leading to an). . net capital outflow and a real exchange rate / a. fals, reduced, appreciation b....
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. An appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national...
What are the effects of an increase in the supply of loanable funds? Select one: Net capital outflow and the real exchange rate both decrease. Net capital outflow decreases, and the real exchange rate increases. Net capital outflow and the real exchange rate both increase. Net capital outflow increases, and the real exchange rate decreases.
14. Consider the open-economy loanable funds model with flexible prices and capital mobility. Suppose that the world consists of a small open economy (we call this domestic) and the rest of the world (we call this foreign). Answer the following questions with the aid of figures where appropriate a. How does an increase in domestic government expenditure affect trade balance and real exchange rate? (2 points] b. How does an increase in foreign government expenditure affect the trade balance and...
Most questions answered within 3 hours.
-
what is the name of the uppermost rock unit "formation" that
underlies Saginaw, mi? This assignment...
asked 5 minutes ago -
What is a good infrastructure recommendation for communications
networks in Hong Kong?
asked 6 minutes ago -
A string is wrapped around a drum that has a radius of 3 cm. If
a...
asked 13 minutes ago -
what applied force is needed to accelerate 50kg at 2m/s^2 if
the friction force is 200
asked 17 minutes ago -
A survey found that the American family generates an average of
17.2 pounds of glass garbage...
asked 25 minutes ago -
Help Please!
Runyan voluntarily petitions for bankruptcy. He has three major
claims against his estate. One...
asked 19 minutes ago -
Key Themes for the study of Islam
Chapter 9: God
In 833 CE, the caliph Al-Ma'mun...
asked 26 minutes ago -
Please, i need Unique answer, Use your own words (don't copy and
paste). *Please, don't use...
asked 50 minutes ago -
In 2018 Lamborghini was quite concerned with pricing the new
Lambo, the Lambo Centenario. The manager...
asked 33 minutes ago -
If someone could solve this and explain how they did so that
would be great.
I...
asked 48 minutes ago -
What would be the formal charge on the nitrogen atom in a
compound that had a...
asked 49 minutes ago -
How is an organization's culture learned? How are the
mores and folkways of the organization passed...
asked 48 minutes ago