Given demand and supply for loanable fund Market at given time period in thetable belowQuantity of loanable funddemanded (billion $)RealQuantity of loanablefund supplied (billion $)interest rate0.54001200.7538014013601601801.253401.5320201.753002202802402.252602602.52402802.7522030032003203.251803403.51603603.751403804120400Instructions:1. Using excel, find the equilibrium real interest rate and quantity of loanablefund, show the point on the graph.2. If this country experiences an expansion business cycle phase that increasesthe demand for loanabfund by $40 billion.a) Find the new equilibrium real interest rate and quantity of loanablefund.b) Show the shift on the graph.3. Starting from the original equilibrium If there is a decreases in aggregateincome that decreases supply for loanable fund by $20 billion.a) Find the new equilibrium real interest rate and quantity of loanablefund.b) Show the shift on the graph. (

Given demand and supply for loanable fund Market at given time period in the table below Real interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund supplied (billion $) 0.5 400 120 0.75 380 140 1 360 160 1.25 340 180 1.5 320 20 1.75 300 220 280 240 2.25 260 260 2.5 240 280 2.75 220 300 3 200 320 3.25 180 340 3.5 160 360 3.75 140 380 4 120 400 Instructions: 1. Using excel, find the equilibrium real interest rate and quantity of loanable fund, show the point on the graph.

Given demand and supply for loanable fund Market at given time period in the table below Real interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund supplied (billion $) 0.5 400 120 0.75 380 140 1 360 160 1.25 340 180 1.5 320 20 1.75 300 220 280 240 2.25 260 260 2.5 240 280 2.75 220 300 3 200 320 3.25 180 340 3.5 160 360 3.75 140 380 4 120 400 Instructions: 1. Using excel, find the equilibrium real interest rate and quantity of loanable fund, show the point on the graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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