31. Table 4.6 shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense. Interest Rate 5% 6% 7% 8% 9% 10% Table 4.6 Qs 130 135 140 145 150 155 Qd 170 150 140 135 125 110

31. Table 4.6 shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense. Interest Rate 5% 6% 7% 8% 9% 10% Table 4.6 Qs 130 135 140 145 150 155 Qd 170 150 140 135 125 110

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I need help answering the questions?

11:28
Problems
E
Interest Rate
5%
31. Table 4.6 shows the amount of savings
and borrowing in a market for loans to
purchase homes, measured in millions of
dollars, at various interest rates. What is the
equilibrium interest rate and quantity in the
capital financial market? How can you tell?
Now, imagine that because of a shift in the
perceptions of foreign investors, the supply
curve shifts so that there will be $10 million
less supplied at every interest rate. Calculate
the new equilibrium interest rate and quantity,
and explain why the direction of the interest
rate shift makes intuitive sense.
6%
7%
8%
9%
10%
openstax.org
Table 4.6
Qs
130
135
140
145
150
(C.
155
Qd
170
150
140
135
125
AA
110

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