Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 7CQ
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Please see the images below. I just need to verify that the answers I have are the correct ones.
![Assume that the table represents the financial capital market of Yemen. Compute the market shortage if the interest rate is set
equal to 11%.
Quantity of financial
Interest
Quantity of financial
capital demanded
Rate (%)
capital supplied ($ billion)
($ billion)
10
1100
900
11
800
720
11.5
700
660
12
600
600
12.5
500
850
13.00
400
900
billon
Market Shortage = $
80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f79dac5-2fbe-42d7-a6cd-6c9f52e4d201%2F6b24208a-4715-4194-b7a3-a4806b4c8258%2Fe8t7f8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that the table represents the financial capital market of Yemen. Compute the market shortage if the interest rate is set
equal to 11%.
Quantity of financial
Interest
Quantity of financial
capital demanded
Rate (%)
capital supplied ($ billion)
($ billion)
10
1100
900
11
800
720
11.5
700
660
12
600
600
12.5
500
850
13.00
400
900
billon
Market Shortage = $
80
![Various forms of capital are used in the production of final goods and services. However, the term financial capital market
refers to
a market where firms with goods and services and households which demand goods and services interact.
a market where households with savings and firms which demand funds for investment interact.
a market where households with human capital and firms which demand human capital interact.
O a market where households with intangible capital and firms which demand intangible capital interact.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f79dac5-2fbe-42d7-a6cd-6c9f52e4d201%2F6b24208a-4715-4194-b7a3-a4806b4c8258%2Fe72avp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Various forms of capital are used in the production of final goods and services. However, the term financial capital market
refers to
a market where firms with goods and services and households which demand goods and services interact.
a market where households with savings and firms which demand funds for investment interact.
a market where households with human capital and firms which demand human capital interact.
O a market where households with intangible capital and firms which demand intangible capital interact.
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