Consider the market for loanable funds. For each of the following separate scenarios, draw a graph to show how the market equilibrium will change. (a) Consumers are confident about the economy and they spend more. (b) Firms receive tax credit for buying high- tech equipment. (c) The government builds more infrastructure.
Consider the market for loanable funds. For each of the following separate scenarios, draw a graph to show how the market equilibrium will change. (a) Consumers are confident about the economy and they spend more. (b) Firms receive tax credit for buying high- tech equipment. (c) The government builds more infrastructure.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:(This is a file upload question. You can draw
your graphs/diagrams with a computer or
hand draw them on a piece of paper. If you
draw them with a computer, you simply
upload the electronic file here. If you hand
draw your work, you can scan it with a
scanner or cellphone to upload the file here.
The file uploaded must be in the format of
doc, docx, pdf, jpg or png.)
Consider the market for loanable funds. For
each of the following separate scenarios,
draw a graph to show how the market
equilibrium will change.
(a) Consumers are confident about the
economy and they spend more.
(b) Firms receive tax credit for buying high-
tech equipment.
(c) The government builds more
infrastructure.
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