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Move the appropriate curve or curves in each graph to illustrate the effect of each of the four events on the market for loanable funds. If the event should not impact the market for loanable funds, then leave the graph unchanged.

Move the appropriate curve or curves in each graph to illustrate the effect of each of the four events on the market for loanable funds. If the event should not impact the market for loanable funds, then leave the graph unchanged.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Investment — End of Chapter Problem

Move the appropriate curve or curves in each graph to illustrate the effect of each of the four events on the market for loanable funds.

If the event should not impact the market for loanable funds, then leave the graph unchanged.

c. Chinese investors stop sending their funds to the United States, reducing net capital inflows. Real interest rate d. The nominal interest rate rises 1% in response to a 1% rise in the inflation rate. Supply XIX Demand Quantity of loanable funds Quantity of loanable funds Suplly Demand
Transcribed Image Text:c. Chinese investors stop sending their funds to the United States, reducing net capital inflows. Real interest rate d. The nominal interest rate rises 1% in response to a 1% rise in the inflation rate. Supply XIX Demand Quantity of loanable funds Quantity of loanable funds Suplly Demand
a. The government runs a government budget surplus instead of a deficit. Real interest rate XX Demand Quantity of loanable funds b. The government decides to forgive some of the $1.53 trillion in student loan debt. Supply Quantity of loanable funds Supply Demand
Transcribed Image Text:a. The government runs a government budget surplus instead of a deficit. Real interest rate XX Demand Quantity of loanable funds b. The government decides to forgive some of the $1.53 trillion in student loan debt. Supply Quantity of loanable funds Supply Demand
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