gure: Loanable Funds erest ate 6% S D $100 Quantity of loanable fund (billions of dollars n the loanable funds market exhibite ew equilibrium quantity of loanable The government eliminates taxe Profit expectations for business i Capital inflows from foreign citi The federal government runs a b

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Solve all this question ....you will not solve all questions then I will give you down upvote....

stolt 8 01 10
Macmillan Learning
Figure: Loanable Funds
Interest
rate
0
$100
Quantity of loanable funds
(billions of dollars)
In the loanable funds market exhibited above, which scenario might produce a new equilibrium interest rate of 8% and a
new equilibrium quantity of loanable funds of $75 billion?
The government eliminates taxes on income from interest earned.
Profit expectations for business investments become less optimistic.
Capital inflows from foreign citizens decline.
The federal government runs a budget deficit, rather than a surplus.
Transcribed Image Text:stolt 8 01 10 Macmillan Learning Figure: Loanable Funds Interest rate 0 $100 Quantity of loanable funds (billions of dollars) In the loanable funds market exhibited above, which scenario might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $75 billion? The government eliminates taxes on income from interest earned. Profit expectations for business investments become less optimistic. Capital inflows from foreign citizens decline. The federal government runs a budget deficit, rather than a surplus.
Interest
rate
0
S
X
$100
Quantity of loanable funds
(billions of dollars)
In the loanable funds market exhibited above, which scenario might produce a new equilibrium interest rate of 8% and a
new equilibrium quantity of loanable funds of $150 billion?
The federal government has a budget surplus, rather than a budget deficit.
Businesses become more optimistic about the return on investment spending.
There is an increase in capital inflows from other nations.
Consumption as a fraction of disposable income increases.
Transcribed Image Text:Interest rate 0 S X $100 Quantity of loanable funds (billions of dollars) In the loanable funds market exhibited above, which scenario might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150 billion? The federal government has a budget surplus, rather than a budget deficit. Businesses become more optimistic about the return on investment spending. There is an increase in capital inflows from other nations. Consumption as a fraction of disposable income increases.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Market for loanable funds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education