A new technology is developed that increases firms' expected profits. Draw a curve that shows the effect of this event. 10- Draw a point at the new equilibrium quantity of loanable funds and the new equilibrium real interest rate. 8- When a shortage or a surplus arises in the loanable funds market 6- A. the nominal interest rate is pulled to the new equilibrium level OB. the supply of loanable funds changes to return the economy to its original real interest rate 4- OC. the demand for loanable funds changes to return the economy to its original real interest rate OD. the real interest rate is pulled to the new equilibrium level 2- Real interest rate (percent per year) SLF DLF 0 Loanable funds (trillions of 2009 dollars) >>> Draw only the objects specified in the question. G
A new technology is developed that increases firms' expected profits. Draw a curve that shows the effect of this event. 10- Draw a point at the new equilibrium quantity of loanable funds and the new equilibrium real interest rate. 8- When a shortage or a surplus arises in the loanable funds market 6- A. the nominal interest rate is pulled to the new equilibrium level OB. the supply of loanable funds changes to return the economy to its original real interest rate 4- OC. the demand for loanable funds changes to return the economy to its original real interest rate OD. the real interest rate is pulled to the new equilibrium level 2- Real interest rate (percent per year) SLF DLF 0 Loanable funds (trillions of 2009 dollars) >>> Draw only the objects specified in the question. G
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:A new technology is developed that increases firms' expected profits.
Draw a curve that shows the effect of this event.
10-
Draw a point at the new equilibrium quantity of loanable funds and the new
equilibrium real interest rate.
8-
When a shortage or a surplus arises in the loanable funds market
6-
A. the nominal interest rate is pulled to the new equilibrium level
OB. the supply of loanable funds changes to return the economy to its
original real interest rate
4-
OC. the demand for loanable funds changes to return the economy to its
original real interest rate
OD. the real interest rate is pulled to the new equilibrium level
2-
Real interest rate (percent per year)
SLF
DLF
0
Loanable funds (trillions of 2009 dollars)
>>> Draw only the objects specified in the question.
G
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