Question

An increase in the supply of saving curve will cause the equilibrium interest rate to: increase....

An increase in the supply of saving curve will cause the equilibrium interest rate to: increase. decrease. remain unchanged. first increase and then decrease.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

In saving investment curve, when supply of saving curve increases then equilibrium interest rate decreases.

ans is B

Add a comment
Know the answer?
Add Answer to:
An increase in the supply of saving curve will cause the equilibrium interest rate to: increase....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Determine if the scenario below will cause the position of the SRAS curve to increase, decrease,...

    Determine if the scenario below will cause the position of the SRAS curve to increase, decrease, or remain unchanged. Businesses expect a decrease in the price of resources in the near future. A) Increase B) Decrease C) Remain unchanged

  • Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To...

    Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...

  • The demand for loanable funds decreases while the supply simultaneously increases. This would cause the equilibrium...

    The demand for loanable funds decreases while the supply simultaneously increases. This would cause the equilibrium 1)quantity of loanable funds to increase, but the effect on the equilibrium interest rate would be uncertain. 2)interest rate to decrease, but the new equilibrium quantity would be uncertain. 3)quantity of loanable funds to increase and the equilibrium interest rate to decrease. 4)quantity of loanable funds to decrease and the equilibrium interest rate to increase. 5)interest rate to increase, but the new equilibrium quantity...

  • Show how a decrease in the supply of loanable funds and an increase in the demand...

    Show how a decrease in the supply of loanable funds and an increase in the demand for loanable funds can raise the real interest rate and leave the equilibrium quantity of loanable funds unchanged. Draw a demand for loanable funds curve. Label it DLF0. Draw a supply of loanable funds curve. Label it SLF0. Draw a point at the equilibrium real interest rate and quantity of loanable funds. Label it 1. Now draw a curve that shows an increase in...

  • . When the supply curve shifts out to the right) and the demand curve shifts out...

    . When the supply curve shifts out to the right) and the demand curve shifts out to the right), the equilibrium price will: increase. remain unchanged decrease. be indeterminate. Which enterprise is NOT an example of a market? a neighborhood lemonade stand the New York Stock Exchange painting one's house ticket scalping

  • Assume the LM curve is flat. An increase in the risk premium A. the IS-curve will...

    Assume the LM curve is flat. An increase in the risk premium A. the IS-curve will shift to the right and an increase in equilibrium output. B. the LM-curve will shift to the up and an increase in equilibrium interest rate. C. the LM-curve and IS-curve remain same, so no impact on equilibrium output and interest rate D. the LM-curve will shift to the down and an increase in equilibrium output. E. the IS-curve will shift to the left and...

  • 4. If nominal money demand doubles and the real money supply also does what happens to...

    4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...

  • OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the...

    OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the LM schedule to the right from LMoto LM b shifts the LM schedule to the left from LMo to LM e leaves the LM curve unchanged at LM. d. shifts neither the IS nor the LM schedule. 11. Changes in all of the following shift the LM curve except a. the price level. b. income. c. the money supply. d. money demand. e. all...

  • Which of the following would cause an increase in the equilibrium price and an increase in...

    Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons? a. a decrease in demand and an increase in supply b. an increase in demand in demand and an increase in supply c. an increase in supply and an increase in demand greater than the increase in supply d.. an increase in supply

  • i need answers and explanations 35. With the low unemployment rate, households become more optimistic about...

    i need answers and explanations 35. With the low unemployment rate, households become more optimistic about the future economy and decide to increase their spending on durable goods such as automobiles. According to the model of the market for loanable funds, A) real interest rate and the quantity of loanable funds will remain unchanged. B) real interest rate will increase and the quantity of loanable funds will decrease. C) real interest rate will decrease and the quantity of loanable funds...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT