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 |
Homework Answers
If disposable income increases , people will decide to increases saving , the supply of loanable funds will increase. As a result , the equilibrium quantity of loanable funds will increase and the real interest rate will fall. Hence, option(D) is correct.
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If disposable income increases, people will decide to ________
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Suppose that because of a sudden increase in life expectancy, a lot of people decide to...
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...
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The government in an open economy increases spending. As a result, the supply of loanable funds from national saving —, leading to a(n) — net capital outflow __ and a real exchange rate ___, a. falls, reduced, appreciation b. falls, increased, depreciation C increases, increased, appreciation d. increases, decreases, depreciation
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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...
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