Production machines become more productive. Firms want to borrow more money to buy the machines. Which of the following graphs correctly shows how the loanable funds market changes?Interest rateLoanable funds market※Savings/InvestmentsInterest rateLoanable funds marketXInterest rateInterest rateSavings/InvestmentsLoanable funds marketSavings/InvestmentsLoanable funds market#Savings/Investments Household time preferences increase (people become less patient). Which of the following graphs correctly shows how the loanable funds market changes?Interest rateLoanable funds marketInterest rateSavings/InvestmentsLoanable funds market☆Interest rateLoanable funds market#Savings/InvestmentsSavings/InvestmentsInterest rateLoanable funds marketSavings/Investments

A stronger time preference means that people tend to spend more at present and save less. As people…

Answered: Production machines become more…

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

Where does the demand for loanable funds come from in a closed economy? How does a government adopting a policy of taxing investment from the private sector impact the demand for loanable funds? What happens to the equilibrium interest rate following this policy? Illustrate using the supply and demand in the market for loanable funds.
According to how we model the Loanable Funds market in Ch. 6 (considering household savings and taking (T – G) as government’s net ‘saving,’ which could be negative it there were a budget deficit), which of the following shifts the Supply of Loanable Funds curve to the left? (T = taxes; G = government spending.) Group of answer choices A) higher tax rates on business investment spending B) a change in tastes toward consuming less C) higher budget deficit D) change in tastes toward saving more E) lower budget deficit
What happens to the market for loanable funds when interest rates increase? Planned investments increase. Planned investments is not effected There is a decrease in demand for loanable funds. There is a decrease in quantity demanded for loanable funds.
Macmillan Learning U The graph depicts the market for loanable funds. Shift the appropriate curves to indicate what will happen to the market if there is an improvement in the technology firms use in production. As a result of this change, the real interest rate is now % Real interest rate 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 and the quantity of funds is $ billion. 0.5 Supply Demand 0.0 0 5 10 15 20 25 30 35 40 45 50 Loanable funds (in billions)
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
When the interest rate decreases, a)people would want to lend more, making the supply of loanable funds increase. b)people would want to lend less, making the supply of loanable funds decrease. c)people would want to lend more, making the quantity of loanable funds supplied increase. d)people would want to lend less, making the quantity of loanable funds supplied decrease.
(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. An increase in private savings will shift the supply curve for loanable funds to the Interest rate causing the interest rate to r* = 6% E Supply
Real interest rate (percent per year) 10 2 0 DLF 150 300 450 600 750 900 Loanable funds (billions of 2009 dollars) In the above figure, technological progress that increases the expected profit will shift the demand for loanable funds curve leftward. shift the demand for loanable funds curve rightward. have no effect on the demand for loanable funds curve. make the demand for loanable funds curve become horizontal.
The figure below tells about the loanable funds markets in 2015. Suppose the GDP deflator in 2014 was 210 and in 2015 was 216.3. What is the approximate nominal interest rate in 2015?
What is the price of funds in the loanable funds market? a. the Consumer Price Index b. the real wage rate c. inflation expectation d. the interest rate e. the GDP price index
Lista the factors that affect the supply side of the loanable funds market. which factors shifts the curve?
Use the table about Hikaru and his parents to answer the question. Table: Hikaru and His Parents His parents do not pay Hikaru's college tuition. Hikaru starts college right high school and saves most of after high school with no debt after high school with no debt His parents agree to pay Hikaru's college tuition. Hikaru starts college right Hikaru works part-time in his income. and has savings when he graduates from college. for at least one year. Hikaru does not work or save Hikaru starts college right in high school. Hikaru takes out a student loan or delays college. after high school with no debt. What is this kind of table called? a game matrix an outcome matrix an interaction table O a payoff table

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