A country has a net capital outflow of $700 billion and domestic investment of $120 billion. What is the quantity of loanable funds demanded? A. $700 billion B. $120 billion C. $580 billion D. $820 billion
Q: You can tell a firm is operating in a market that is in long-run competitive equilibrium if a)…
A: A competitive market has a number of buyers and sellers with identical products. Both buyers and…
Q: The president's executive jet is not fully utilized. You judge that its use by other officers would…
A: Equivalent annual cost (EAC) is a financial tool used to express the total cost of owning,…
Q: Susan started her new job as an editorial assistant in prestigious media company in 2018. She…
A: The average change in prices that urban consumers pay for a basket of services and items over time…
Q: Case P TR TC TFC TVC AC AVC MC 1. 2. 1000 5000 $1,500 $5.50 5.00 8000 1000 3.50 3.00 4.50 At Min. 3.…
A: Average variable cost is the cost of the variable expenses of a single unit of goods. The firm has…
Q: consumer surplus, producer surplus, and deadweight loss
A: Consumer Surplus (CS) represents the distinction between what consumers are inclined to pay for a…
Q: How does an increase in the minimum wage affect unemployment levels in a perfectly competitive labor…
A: The issue is to determine the effect of an expansion in the lowest pay permitted by law on…
Q: 6. Complete the following table and answer the accompanying questions. a. At what level of the…
A: Net benefit compares the total benefit against the harm on the same scale. It can also be termed as…
Q: Refer to Figure 15-4. How much output will the monopolist produce in order to maximize profit? O a.…
A: Monopoly is a market where there is a single seller selling a unique product.
Q: How does horizontal growth differ from vertical growth as a corporate strategy? Discuss different…
A: The objective of this question is to understand the difference between horizontal and vertical…
Q: There is a saying that a person worried about the source of his next meal is not much concerned…
A: The statement is a reflection that essential needs of our daily life, e.g. hunger, become our…
Q: An economic evaluation of the following mutually exclusive alternative equipment is being conducted.…
A: An economic evaluation of the following mutually exclusive alternatives is being conducted.since in…
Q: maximises profits
A: In the context of economics and business, profit maximization refers to the process by which a…
Q: each will specialize in. (c) Please derive the relative supply of X goods in terms of Z. (d** Bonus)…
A: The Production Possibility Frontier (PPF) shows the highest possible combinations of two goods that…
Q: According to the model in chapter 4, the Central Bank of an economy with free capital mobility and a…
A: Money supply refers to the total amount of money in circulation or in existence in a nation.
Q: Pix of Gr Pork B She demand for garlic bread falls. allarate the effect this has on the market for…
A: Producer surplus is the financial benefit earned by the producer for selling a good. The higher the…
Q: Government spending on health care has been A) shrinking as a share of government spending. B)…
A: Government spending on health care refers to the allocation of funds by the government towards…
Q: At first, it might seem that valuable commodities, such as cattle or lead bars, might be good forms…
A: Money is any commodity that is generally accepted as payment for products and services and repayment…
Q: Which banks can choose not to be insured by the FDIC? Banks that are members of the Fed…
A: Credit unions can choose not to be insured by the FDIC. Credit unions are typically insured by the…
Q: Aarya's favorite past-times are playing miniature golf and racing go-karts. In her 2023 annual…
A: Budget constraint refers to the constraint that the income of a consumer imposes on the consumption…
Q: If a country increased the production of its capital goods then the more unemplomed resources there…
A: Capital goods are those goods that are used in the production of goods and services. Examples of…
Q: Show on a graph of the market for saving and investment the effect of the following. (The graph is a…
A: Loanable funds market helps determine the equilibrium interest rate and the quantity of loanable…
Q: Problem 1 (25pts) Benjamin spends his time either watching movies (x1) (he uses "on demand" option,…
A: The objective of the question is to understand Benjamin's consumption behavior for movies and MP3…
Q: 4. Small Open Economy and trade deficit Suppose that Ecuador is a small open economy running a trade…
A: The trade deficit is the situation in the economy when the imports in the economy exceed the exports…
Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…
A: To perform an after-tax annual worth (AW) based replacement study, we need to consider the after-tax…
Q: Consider a “market” with differently substitute goods. Firms 1 and 2 produce homogeneous goods, but…
A: Firms 1 and 2 are stated to produce homogenous goods. The inverse demand function for each of these…
Q: In studying his campaign plans, Mr. Singleton wishes to estimate the difference between men's and…
A: The objective of this question is to find the sample proportions, denoted as p1^ and p2^, of men and…
Q: X Miniature circuit break fail Power failure Relay connect fail Y Diode Z Over Fail heat Use the…
A: This very fact is a power breakdown. The Fault Tree diagram presented opens up for such scenarios…
Q: A large standby electricity generator in a hospital operating room has a first cost of $71,750 and…
A: First cost = 71750Time period = 6 yearsAnnual Operating cost = 9250Interest rate = 12%
Q: What is a comparative analysis of monetary and fiscal policy
A: Explained below in detailExplanation:Approach to solving the question:A comparative analysis of…
Q: Ann and Stella want to watch a movie together this weekend. There are 8 movies playing in theatres…
A: The objective of the question is to find out the total number of pure strategies that Stella has. A…
Q: According to the figure, what combination would have caused equilibrium to move from point A to…
A: The demand and supply framework is a fundamental concept in economics that analyzes the behavior of…
Q: What is the likely effect of introducing a "nudge" in the form of default enrollment in a retirement…
A: The issue is to determine how the presentation of a "push" as default enlistment in a retirement…
Q: A bond with a face value of $10,000 pays interest of 8% per year. This bond will be redeemed at its…
A: Price of bond = $6149 rounded offExplanation:Price of bond = PV of coupon Payments + PV of…
Q: The Cooper Company has the following information on costs. Quantity Fixed Cost Variable Cost 3 200…
A: Total cost is the cost of producing all the units of goods. Fixed cost is the cost that remains…
Q: e. Which of the following is an example of government spending contributing to GDP? a) Transfer…
A: Government spending refers to the expenditures made by the government on goods and services, which…
Q: What effect does implementing a progressive tax system have on income inequality in a country? A. It…
A: A progressive tax system is one in which the tax rate increases as the taxable amount increases. It…
Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…
A: To determine the value of the profitability index for each project, let me show the formula, The…
Q: $6 65 $5 $4 $3 A B 39 $2 0 DG n E H K ךד: S D Q1 Q2 Q3 When the government puts a $4 tax on this…
A: Tax is a mandatory payment to the government. The tax amount is spent on the economy through public…
Q: Use the provided formula for the elasticity of demand to help answer the following. I will grade…
A: Elasticity of demand measures the responsiveness of the quantity demanded of a good or service to a…
Q: The accompanying graph depicts a hypothetical market for salt. Suppose that an excise or commodity…
A: The problem is to look into the effects of a specific excise or commodity, salt tax, on the market…
Q: If the dollar depreciates in value relative to foreign currencies, then aggregate O supply and…
A: Since you have posted multiple questions, we will provide solutions to the first question only.…
Q: As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation…
A: B/C analysis i.e. benefit cost analysis compute the ratio of benefits and costs in the similar time…
Q: Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent Note:…
A: Net present value refers to the difference between the present value of cash inflows and the present…
Q: Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the…
A: The Perfect competition is a market which is consisting of a large numbers of buyer and seller. In…
Q: elasticity
A: The price elasticity of demand measures the responsiveness of the quantity demanded of a terrific or…
Q: None
A: The production function shows the relationship between the input used and the output produced.The…
Q: Consumption smoothing emphasizes the need to promote price stability and reduce prices. borrow and…
A: The issue is to comprehend the idea of utilization smoothing and what conduct or methodology it…
Q: A firm's production function is given by Q = 20L0.8 K0.2. At that moment, the firm sets L = 1,000…
A: An isoquant curve shows the various combinations of labor (L) and capital (K) to produce a constant…
Q: (a) Explain why the household wealth increased more rapidly through the wife's market wage under…
A: The household wealth value is given as w is considered the average wage rate of married women earned…
Q: Consider the market for gasoline, illustrated in the figure to the right. The equilibrium quantity…
A: Equilibrium is where the demand curve intersects the supply curve.Demand curve is the downward…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- What do loanable funds finance? What is the source of loanable funds? Loanable funds finance _______. A. business investment, the government budget surplus, and international borrowing B. business investment, the government budget deficit, and international investment or lending C. private saving, the government budget surplus, and international borrowing D. private saving, the government budget deficit, and international investment or lendingIf at a given real interest rate desired national saving is $115 billion, domestic investment is $60 billion, and net capital outflow is $40 billion, then at that real interest rate in the loanable funds market there is a A. surplus. The real interest rate will fall. B. surplus. The real interest rate will rise. C. shortage. The real interest rate will rise. D. shortage. The real interest rate will fall.Q2.Using the Domestic Loanable funds market diagram, Explain what happens to Private savings, private investment spending and the interest rate if each of the following events occur. Assume there are no capital inflows or outflows. b. Households save more in anticipation of a downturn in economic activity in the future.
- National saving equals private saving plus government saving, which in turn equals A. GDP + NFP C - G. B. GDP + C + G. C. C+ S + T. D. GDP + NFP.3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a a. surplus. The real interest rate will fall. b. shortage. The real interest rate will fall. c. shortage. The real interest rate will rise. d. surplus. The real interest rate will rise.#42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion. What are national saving and investment for this country? a $21 trillion, $9 trillion b $9 trillion, $21 trillion c $9 trillion, $9 trillion d $21 trillion, $21 trillion
- Question Completion Status: QUESTION 17 A country has a net capital outflow of $200 billion and domestic investment of $150 billion. What is the quantity of loanable funds demanded? O a. $150 billion Ob. $200 billion O c. $50 billion O d. $350 billionEqUuil rate= 17% , borrowing by 171 million at old interest rate 15%. compared to value 151 million Question 2. Suppose initially the market for loanable funds is in equilibrium with I*-S*=300 million. Equilibrium interest rate is 1#%. Other things being the same, assume there is a rise in government borrowing by $1#1 million. At the old interest rate (1#%), what would the amount of national saving (S) equal to? What would happen to the interest rate value once the new equilibrium is reached? (Will it change? How?) By how much, you would think that investment (I), national saving, and private saving might change in the new equilibrium (compared to value S1#1 million), and would it be an increase, decrease, or no change? [Use maximum five sentences to clarify vour computations. Type vour answers strietly in the provided space before the nextQUESTION 11 What does (Y - T-C) represent in a closed economy? a. national saving b. private saving С. public saving d. government tax revenue a C QUESTION 12 For an imaginary closed economy, T = $12,000; S = $22,000;C = $90,000; and the government is running a budget surplus of $4,000. Then %3D %3D private saving = $20,000 and GDP = $110,000. a. %3D %3D private saving = $18,000 and GDP = $120,000. private saving = $20,000 and GDP = $126,000. private saving = $24,000 and GDP = $138,000. b. %3D С. %3D d. %3D a b. Sa
- Most of the investment decisions in the U.S. economy are made by a. consumers. b. governmental institutions. c. businesses. d. international financial agencies.If foreign income and wealth decrease, this would most likely a. not affect the market for loanable funds. b. cause the supply of loanable funds to increase. c. cause the supply of loanable funds to decrease. d. cause the demand for loanable funds to increase in order for foreigners to maintain consumption. e. cause the demand for loanable funds to decrease.What event raises the equilibrium real interest rate and decreases the equilibrium quantity of loanable funds? _______ raises the equilibrium real interest rate and decreases the equilibrium quantity of loanable funds. A. A decrease in default risk B. An increase in expected future income C. An increase in disposable income D. A decrease in wealth Thank you!@# 1%2