In the model of the market for loanable funds, which of the following best describes why the supply curve is upward sloping? a The higher the interest rate, the more likely households are to spend b The higher the interest rate, the less likely firms are invest c The higher the interest rate, the more likely households are to borrow d The higher the interest rate, the more likely households are to save

In the model of the market for loanable funds, which of the following best describes why the supply curve is upward sloping? a The higher the interest rate, the more likely households are to spend b The higher the interest rate, the less likely firms are invest c The higher the interest rate, the more likely households are to borrow d The higher the interest rate, the more likely households are to save

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 4SCQ: Edna is living in a retirement home where home where most of her needs are taken care of, but she...

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Suppose the government runs fewer budget deficit and there is a decrease in the average household income. Then, O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would increase. O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be indeterminate. O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would decrease. The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would increase. The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be indeterminate.
Jse ule following graph to show the effects on the Market for Loanable Funds of many people deciding to play the lottery rather than save money for retirement: Instructions: Drag the supply curve to illustrate the appropriate change in supply. Market for Loanable Funds Interest Rate 100 90 Supply (Savings) 80 70 60 50 40 Demand (Investment) 30 20 10 10 20 30 40 50 60 70 80 90 100 Dollar volume of Savings, Investment
What is the relationship between Consumption and Savings What are the factors that determine the level of both consumption and savings? Note: Discuss in 3 paragraphs and cite resources.
3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Maria buys a new crane for her construction firm. Simone purchases shares of stock in Warm Breeze, a cloud computing company. Rajiv takes out a loan and uses it to build a new cabin in Idaho. Kevin purchases a corporate bond issued by an automotive firm. Saving O Investment
1. a. Explain consumption and saving function by using numerical example and diagram.
U3e the tollowing graph to show the effects on the Market for Loanable Funds of businesses discovering they have more than enough capital to meet the demand for their goods: Instructions: Drag the demand curve to illustrate the appropriate change in demand. Market for Loanable Funds Interest Rate 100 Supply (Savings) 90 80 70 60 50 Demand (Investment) 40 30 20 10 10 20 30 40 50 60 70 80 90 100 Dollar volume of Savings, Investment
3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Saving Investment Becky purchases new mixers for her commercial bakery. Alex purchases a certificate of deposit at his bank. Eileen purchases shares of stock in Bayzer, a pharmaceutical company. Clancy purchases a new townhouse in Hartford.
What is the term "investment" define? Explain in a economic sense.
no ai answer only real person
3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Paolo buys a government bond. Sharon buys a new crane for her construction firm. Amy purchases shares of stock in Warm Breeze, a cloud computing company. Van purchases a new townhouse in Hartford. Saving Investment O O
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a	The higher the interest rate, the more likely households are to spend
b	The higher the interest rate, the less likely firms are invest
c	The higher the interest rate, the more likely households are to borrow
d	The higher the interest rate, the more likely households are to save