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Can you explain to me why the answer would be B instead of A? I do...
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...
Hello! Could you please answer all questions? I think the ones I put in blue are correct but I am not too sure. QUESTION 7 Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be a. 1 percent. b. 7 percent. c. 4 percent. d. 8 percent. QUESTION 8 The idea that people like to work more for higher wages, but...
22) Using classical theory, an increase in the capital stock, other things equal, would cause 22) A) output to rise and price levels to fall B) output and prices to both rise C) a decrease in equilibrium employment D) an increase in labor supply and output 23) In the classical model; an increase in government spending funded by borowing would 23) A) increase demand for loanable funds, resulting in more consumption spending B) induce households to save more and firms...
Explain Q 12 Why cant i answer that cut government spending decrease the demand. ont giver mort spending derease Interest rate thent Suppose that the new Prime Minister acts to cut government spending and, by doing so, eliminate the current federal government budget deficit. 12. In the loanable funds market, in which direction does the relevant curve shift? The supply curve for loanable funds shifting to the right there are more funds supplied at any given interest rate. 13. Does...
QUESTION 22 A decrease in the budget deficit a. may increase, decrease, or not affect investment spending if private saving doesn’t change. b. makes investment spending fall. c. makes investment spending rise. d. does not affect investment spending. QUESTION 23 A larger budget deficit a. raises the interest rate and investment. b. raises the interest rate and reduces investment. c. reduces the interest rate and investment. d. reduces the interest rate and raises investment. QUESTION 24 A government budget deficit...
22) Which of the following would not increase the supply curve of loanable funds? A) A Federal Reserve purchase does of U.S. Government securities from commercial banks. B) A higher interest rate. C) An increase in the nation's real income D) All of the above shift the supply. 23) In Keynes's liquidity preference framework, A) the demand for bonds must equal the supply of money B) the demand for money must equal the supply of bonds. C) an excess demand...
It is not necessary to write detail answer, some question is easy to find answer, you dont need to explain in detail, thank you :) 7. Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess of money which will cause the interest rate to A) supply; fall- B) supply; rise- C) demand; fall- D) demand; rise- t 8. If the economy is on the LM curve, but is to...
#5 the Greate nd discount- to explain close to high even lain why a d more to ar 2015. at a pre- 4. During the Great Depression of the nal interest rates were close to zero. Explain how real interest rates could be very high even though nominal interest rates were very low. (Hint: Prices fell during parts of the Great Depression.) 5. Assume that after you graduate, you get a job as the chief financial officer of a small...
please answer Question 3 20 pts Assume that there are three assets that you can own: Cash (lowest risk), Bonds (medium risk) Stocks (high risk) The economy has just experience a financial crisis so investors become VERY VERY risk averse. Under these conditions you would expect interest rates to (choose the best answer) O Decrease because bond prices would fall. O Decrease because bond prices would rise O Increase because bond prices would fall. O Increase because bond prices would...
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...