Homework Answers
B is correct
Supply of loanable funds is influenced by expected future income, and the higher a household's expected future income, the smaller is its saving today
Add Answer to:
What influences the supply of loanable funds? The supply of loanable funds is influenced by O...
How do households make saving decisions? The the greater is the amount that a household decides...
How do households make saving decisions? The the greater is the amount that a household decides to save. O A. smaller a household's expected future income and the greater a household's wealth O B. smaller the default risk and the greater a household's wealth O c. greater a household's disposable income and the smaller a household's expected future income OD. higher the expected profit and the greater a household's disposable income
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...
Explain how each of the following events affect the supply of loanable funds curve (shift or...
Explain how each of the following events affect the supply of loanable funds curve (shift or move): a) [1 point] The economy is in a recession so people's disposable income is lower. b) [1 point] The stock market is booming so the people's wealth is higher. c) [1 point] Fewer college graduates are finding jobs so expected future income is lower. d) [1 point] The real interest rate increases.
1. Th e supply of loanable funds: comes from households that consume all of their income...
1. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
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...
If disposable income increases, people will decide to ________ saving, the supply of loanable funds will...
If disposable income increases, people will decide to ________ saving, the supply of loanable funds will ________ and the real interest rate will ________. A. increase; decrease; rise B. decrease; increase; fall C. decrease; decrease; rise D. increase; increase; fall
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...
The following table shows the supply and demand for loanable funds schedule in a small island...
The following table shows the supply and demand for loanable funds schedule in a small island country in the Caribbean at the beginning of 2016. By the end of the year however, the demand for loanable funds increases by $2 billion at each level of the real interest rate and the supply of loanable funds increased by $1 billion at each interest rate. Predict the conditions of the loanable funds market in this country, under the following two scenarios: Scenario...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving a...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving and net foreign saving. b) Investment and net exports. c) Total domestic saving and investment. d) Only total domestic saving. Question 2 (1 point) Saved Assuming all else held constant, an increase in net exports will lead to Question 2 options: a) an increase in net foreign saving. b) a decrease in the source of funds. c) a decrease in the trade...
The greater a household's the less is its saving. O A. expected future profits OB. disposable...
The greater a household's the less is its saving. O A. expected future profits OB. disposable income O C. return from saving OD. wealth Click to select your answer.
How do households make saving decisions? The the greater is the amount that a household decides to save. O A. smaller a household's expected future income and the greater a household's wealth O B. smaller the default risk and the greater a household's wealth O c. greater a household's disposable income and the smaller a household's expected future income OD. higher the expected profit and the greater a household's disposable income
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. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
The following table shows the supply and demand for loanable funds schedule in a small island country in the Caribbean at the beginning of 2016. By the end of the year however, the demand for loanable funds increases by $2 billion at each level of the real interest rate and the supply of loanable funds increased by $1 billion at each interest rate. Predict the conditions of the loanable funds market in this country, under the following two scenarios: Scenario...
The greater a household's the less is its saving. O A. expected future profits OB. disposable income O C. return from saving OD. wealth Click to select your answer.
Most questions answered within 3 hours.
-
in a perfectly elastic collision what is the velocity of ball A
if the original direction...
asked 5 minutes ago -
PLEASE ANSWER ALL
1) The pressure of the atmosphere decreases with increasing
altitude in the
Choose...
asked 20 minutes ago -
A simple random sample of 25,000 individuals are surveyed in
order to determine the prevalence of...
asked 21 minutes ago -
People who do very detailed work close up, such as jewelers,
often can see objects clearly...
asked 25 minutes ago -
14 years ago, Blue Lake Corp. issued 30 year to maturity
zero-coupon bonds with a par...
asked 16 minutes ago -
Warnerwoods Company uses a perpetual inventory system. It
entered into the following purchases and sales transactions...
asked 13 minutes ago -
Equivalent Units of Conversion Costs
The Rolling Department of Oak Ridge Steel Company had 6,842 tons...
asked 17 minutes ago -
what does the concept of "core competence" mean? why
is this concept important? How would you...
asked 20 minutes ago -
__________ is a type of visualization that is linked to strategy
and used within a formal...
asked 21 minutes ago -
A national magazine stated that at most,12% of millennials
have a pool membership. Formulate an appropriate...
asked 33 minutes ago -
Can
you provide the mechanism for enamine hydrolysis. Any example will
work, thank you.
asked 42 minutes ago -
Three of the compounds have ionic bonds (difference in
electronegativity is greater or equal to 2,...
asked 35 minutes ago