Credit Market A. Plot the credit demand and supply curve in a figure. Specify the equi- librium real interest rate (r*) and the equilibrium quantity of credit (B*) in your figure. B. Everything else remaining unchanged, what is likely to happen to the credit market if the following scenario occurs? Separately and graphi- cally show the change of each scenario. Specify the new equilibrium in the credit market. B.1 Businesses in the economy see scope for growth and are planning to expand production in the future. B.2 Households expect a recession in near future. B.3 The government is planning to borrow money from financial in- stitutions for investment in infrastructures.

Just need the top 3 answered

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.)  a. The number of people at the most common ages for home-buying decreases.    b. Rents rise extremely rapidly.  c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.  d. Because of a threat of a war, people become uncertain about their economic future.The overall level of saving in the economy diminishes.  e. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

1. In the resource market, say labor, who is on the demand side and who is on the supply side? What is the difference between monetary flows and real flows? 2a. Assume, the wage rate for Labor = $20/hour and capital cost is $10/hour, find out the cost for techniques 1 and 2 2b. Assume, the wage rate for Labor = $10/hour and capital cost is $20/hour, find out cost techniques 1 and 2 Technique 1 Technique 2 Labor needed 10 What conclusion do you derive from the above example? Capital needed 8 2

A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?

If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was the interest rate you charged?

please answer all of them

assume that as the economy booms, the demand for business and consumer loans rises significantly while the supply of funds and loans remains constant. As a result, the market interest rate for business and consumer loans rises to 20% per year. The government implements a ceiling on interest rates of 15% ab year and as a result options: 1.a greater number of business and consumer loans are made at a lower interest rate than previously 2. the quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs  3. the demand of business and consumer loans rises, while the supply falls and a shortage occurs 4.  the quantity demanded of business and consumer loans rised, while the quantity supplied falls and a shortage occurs

If there is a surplus of loanable funds, then 1) the quantity demanded is greater than the quantity supplied and the interest rate will rise. 2) the quantity demanded is greater than the quantity supplied and the interest rate will fal. O 3) the quantity supplied is greater than the quantity demanded and the interest rate will rise. 4) the quantity supplied is greater than the quantity demanded and the interest rate will fall.

The primary economic function of the "financial system" is to provide "financial intermediation," which means: Select one: O a. keeping the inflation rate at zero, ceteris paribus. b. keeping the inflation rate at the Treasury's "target rate" ceteris paribus. c. matching one person's consumption expenditures with another person's capital expenditures. d. matching one person's borrowing with another person's saving.