Suppose that real interest rates increase across Europe. This development will (DECREASE, INCREASE) U.S. net capital...
Suppose that real interest rates increase across Europe.
This development will (DECREASE, INCREASE) U.S. net capital outflow at all U.S. real interest rates. This causes the (SUPPLY OF, DEMAND OF) loanable funds to (INCREASE, DECREASE) because net capital outflow is a component of that curve.
Homework Answers
Suppose that real interest rates increase across Europe.
This development will increase U.S. net capital outflow at all U.S. real interest rates. This causes the demand of loanable funds to increase because net capital outflow is a component of that curve.
As the real interest rate across Europe has increased then the capital inflow in Europe will increase thus the capital outflow of US will increase. Thus, the demand for loanable fund will increase.
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Suppose that real interest rates increase across Europe.
This development will (DECREASE, INCREASE) U.S.
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Suppose the U.S. supply of loanable funds shifts left. This will a. increase U.S. net capital...
Suppose the U.S. supply of loanable funds shifts left. This will a. increase U.S. net capital outflow and increase the quantity of loanable funds demanded. b. decrease U.S. net capital outflow and increase the quantity of loanable funds demanded. c. decrease U.S. net capital outflow and decrease the quantity of loanable funds demanded. d. increase U.S. net capital outflow and decrease the quantity of loanable funds demanded.
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**each option is fall or rise // or increase or decrease
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Many interest rates in the United Staes have fallen over the past couple of decades. Which...
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(Decrease or Increase)
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\
**each option is fall or rise // or increase or decrease
*** causes the gov to run a budget SURPLUS or Deficit
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**** last they want the graph curve shifted to reflect Scenario
3
10. 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. Treat each scenario separately by...
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Attempts: Keep the Highest: /4 5. 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. Treat each scenario separately by resetting the graph to its original state before examining the effect of each individual scenario. (Note: You will not be graded on any changes you make to the...
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