Question 19 Real interest rate (percent per year) 8 10 ★ 2 0 150 300 450 600 750 900 Loanable funds (billions of 2012 dollars) less than $450 billion. In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be between $450 billion and $600 billion. DLF greater than $600 billion. O $450 billion. 2 pts

Question 19 Real interest rate (percent per year) 8 10 ★ 2 0 150 300 450 600 750 900 Loanable funds (billions of 2012 dollars) less than $450 billion. In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be between $450 billion and $600 billion. DLF greater than $600 billion. O $450 billion. 2 pts

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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x + nswers/antity-demanded-interest-rate-f-loanable-funds-quantity-supplied-of-loanable-funds-percent-85-4-72-8/ff6a6a9e-b347-47ae-9708-95 WhatsApp. https://www.office.c... Online Assessment... Brown ring illust : antity demanded Inter X News rts he antity ed li g Eco 7 15443 obert = SAGE Sec Notes - Macroeconomics Login - Manipal Ed... e similar textbooks Paraphrasing Tool -... Table below shows total demand and supply of loanable funds (in RM billions) in an imaginary economy. Start your trial now! First week only $4.99! → Quantity demanded Interest rate Quantity supplied of of loanable funds (percent) loanable funds Q Search 85 80 75 70 65 60 4 68 0 121 72 73 75 77 79 81 A. Graph the market for loanable fund of this economy based on the data above and indicate the equilibrium quantity of loanable funds. B. Calculate the surplus or shortage at each level of interest rate. C. suppose the demand for loanable funds increases by RM 7 billion at each level of interest rate, indicate the…
Given demand and supply for loanable fund Market at given time period in the table below Quantity of loanable fund demanded (billion $) Real Quantity of loanable fund supplied (billion $) interest rate 0.5 400 120 0.75 380 140 1 360 160 180 1.25 340 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. 2. If this country experiences an expansion business cycle phase that increases the demand for loanab fund by $40 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. 3. Starting from the original equilibrium If there is a decreases in aggregate income that decreases supply for loanable fund by $20 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. (
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2. Suppose there is a plot of land in Balik Pulau which the state government is considering developing. The first proposal is to use the land to create an open-space camping area and another proposal is to develop into a cultural heritage area. The open space camping area is expected to last 12 years while the cultural heritage area is expected to have a life span of 20 years. The net present value of the open space camping area is RM4.5 million while the net present value of the cultural heritage area is RM3 million. Assume the discount rate is 5%. a) Using the roll-over method, which project will be chosen? b) Using the equivalent annual net benefit (EANB) method, which project will be chosen?
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