An economy's saving rate increased from -0.1 percent in 2015 to 2.0 percent in 2016 to 2.4 percent in 2017, to 2.9 percent in 2018, and to 3.0 percent in 2019.Explain why the saving rate might have increased and its effect on the supply of loanable funds.The saving rate might have increased becauseThe increase in the saving rate willthe supply of loanable funds.A. financial market turmoil could decrease wealth and expected future income; increaseB. the demand for loanable funds could have decreased; decreaseC. financial market turmoil always increases wealth and expected future income; increaseD. financial market turmoil could decrease wealth and expected future income; decreaseO E. the demand for loanable funds could have decreased; increaseClick to select your answer.javascript:doExercise(13);esc吕0888F1F2F3F4F5F6F7F8F9F10!@#2$&1234578QWEYtabT

Since 2011, when the recent financial crisis began, the US saving rate has been rising. With the…

An economy's saving rate increased from -0.1 percent in 2015 to 2.0 percent in 2016 to 2.4 percent in 2017, to 2.9 percent in 2018, and to 3.0 percent in 2019. Explain why the saving rate might have increased and its effect on the supply of loanable funds. The saving rate might have increased because The increase in the saving rate will the supply of loanable funds. O A. financial market turmoil could decrease wealth and expected future income; increase O B. the demand for loanable funds could have decreased; decrease O C. financial market turmoil always increases wealth and expected future income; increase O D. financial market turmoil could decrease wealth and expected future income; decrease O E. the demand for loanable funds could have decreased; increase

An economy's saving rate increased from -0.1 percent in 2015 to 2.0 percent in 2016 to 2.4 percent in 2017, to 2.9 percent in 2018, and to 3.0 percent in 2019. Explain why the saving rate might have increased and its effect on the supply of loanable funds. The saving rate might have increased because The increase in the saving rate will the supply of loanable funds. O A. financial market turmoil could decrease wealth and expected future income; increase O B. the demand for loanable funds could have decreased; decrease O C. financial market turmoil always increases wealth and expected future income; increase O D. financial market turmoil could decrease wealth and expected future income; decrease O E. the demand for loanable funds could have decreased; increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

1. I would like for you to identify and explain how a government budget surplus impacts the loanable fund market by explaining which curve(s) moves and which direction. 2. Identify of being a closed economy or an open economy affects the market differently.
The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300 billion per year for investment and consumers borrow $50 billion per year to finance purchases. The government is currently borrowing $150 billion per year to cover its budget deficit. a. Derive the market demand for loanable funds, and show how investors and consumerswill be affected if the budget deficit increases to $250 billion per year. Draw a graphto show your conclusion. b. Assuming taxpayers do not anticipate an increase in the future market rate of interestdue to the increase in budget deficit, show the impact of the increase in the budget deficit on the market for loanable funds. c. How would your conclusion differ if taxpayers fully anticipate future tax increases to offset the increase in the budget deficit? d. Do you think the Ricardian Equivalence is realistic?
Draw the graph of the effect on the equilibrium in the loanable funds market when corporate taxes increase. Does the demand for loanable funds increase or decrease? Does the interest rate increase of decrease?
K Consider the graph to answer the following questions: a. The shift from S, to S₂ represents in the supply of loanable funds. b. With the shift in supply, the equilibrium quantity of loanable funds c. With the change in the equilibrium quantity of loanable funds, the quantity of saving and the quantity of investment ▼ A CI Real Interest Rate Market for Loanable Funds L₂ L1 Loanable Funds ($ per year) S₁ Q
During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would shift: a. the demand for loanable funds left and shift the supply of dollars in the market for foreign-currency exchange right. b. both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange right. c. both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange left. d. the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left.
PLEASE ANSWER ALL QUESTIONS NOT JUST SOME PLEASE WRITE THE EXACT NUMBERS FOR THE GRAPH. PLEASE READ CAREFULLY, THIS MAY BE A SIMILAR QUESTION, BUT ALL QUESTIONS ARE DIFFERENT
If the interest rates increase this will _____ the quantity of loanable funds demanded, and if the interest rates decrease this will______it. Select one: a. increase; reduce b. increase; increase c. reduce; increase Od. reduce; reduce
28. An increase in national saving will cause real interest rate and investment spending to change in which of the following ways? A. B. C. D. E. Real Interest Rate Increase Increase Increase Decrease Decrease Nominal Interest Rate 7%³ z%¹ Sp3 Investment Increase Decrease Not change Increase Not change Sp T Q³ Q¹ D Quantity of Money
17. What makes up the supply curve in the loanable funds market? Why does this curve have a positive relationship with the real interest rate?