If the expected returns on commodities falls, while the expected returns on bonds does not change, then the supply curve for loanable funds will shift to the right
Option(B)
22. If the expected returns on commodities falls, while the expected returns on bonds do not...
1. During the financial crisis of 2008, the prices of U.S. Treasury securities A) rose and the price of corporate bonds declined. B) fell relative to the prices of corporate bonds. C) remained in the same relative position to the prices of corporate bonds. D) were frozen by order of the federal government. 2. Which combination of assets represents the most diversification? A) holding corporate and Treasury bonds B) holding shares of Google and Yahoo C) holding shares of Google...
Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds by a large country can result fall in interest rates Ono change in interest rates O an increase in the interest rate Onone of the answers are correct if wealth increases the loanable funds supply curve shifts to the right true false If you expect prices to continue to fall since they have been falling in the past three months, your are exhibiting adaptive...
9. Refer to the Figure13-2. If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas, what would happen to the exchange rate? a. It would appreciate to E1. b. It would appreciate to E2. c. It would depreciate to E1. d. It would depreciate to E2. ____ 10. When a country experiences capital flight, which of the following best explains the effects? a. The interest rate falls because the demand for loanable funds shifts left....
Suppose that because of a sudden increase in life expectancy, a lot of people decide to save more for what they expect to be a longer retirement. This will ... shift the demand for loanable funds to the right causing the interest rate to rise. shift the demand for loanable funds to the left causing the interest rate to fall. shift the supply of loanable funds to the left causing the interest rate to rise. shift the supply of loanable...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of the following curves would this quota shift? a. supply of loanable funds left b. demand for loanable funds left c. demand for Canadian dollars right d. supply of Canadian dollars left 8. Suppose the Canadian government imposed import quotas on agricultural products. According to the foreign-currency exchange market diagram, which of the following outcomes would most likely result? a. Both the demand and supply curves...
The Federal Reserve issues a report indicating that future inflation will increase from 3% to 4%. As a result... A) the demand for loanable funds shifts right. B) the supply curve for bonds shifts left. C) the equilibrium interest rate falls. D) the equilibrium price of bonds rises.
6.For an economy that engages in international trade, GDP is divided into four components. Which of the following items is not one of those components? a. Consumption. b. Taxes. c. Government purchases. d. Net exports. 7. The slope of the demand for loanable funds curve represents the a. positive relation between the real interest rate and investment. b. negative relation between the real interest rate and investment c. positive relation between the real interest rate and saving d. negative relation...
The loanable funds market is in equilibrium. Due to a change in tax law, many workers increase the amount of their income that they devote to retirement savings (and consume less). What happens? The demand for loanable funds shifts to the right, and interest rates rise. The supply of loanable funds shifts to the right, and interest rates fall. The demand for loanable funds shifts to the left, and interest rates fall. The supply of loanable funds shifts left, and...
A.) Suppose that investors in the bonds market find that risk levels decrease. Consequently, the demand for bonds should _____ and the demand curve will shift to the ____. A. decrease; right B. decrease; left C. increase; right D. increase; left B.) Suppose that government deficit spending rises. In this case, we would expected that the equilibrium price will ____ and the equilibrium yield will ____. A. rise; fall B. rise; rise C. fall; rise D. fall; fall
Other things the same, an increase in taxes with no change in government purchases makes national saving a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.