Real interest rate (percent per year]SLF1SLFOSLF2Loanable funds (trillions of 2009 dollars)In the above figure, the economy is at point a on the initial supply of loanable funds curve SLFO.What happens if the real interest rate rises?Nothing; the economy would remain at point a.There would be a movement to a point such as b on supply of loanable funds curve SLFO.O The supply of loanable funds curve would shift rightward to a curve such as SLF2.The supply of loanable funds curve would shift leftward to a curve such as SLF1.

In an economy the rate of interest determines the price at which borrowers and savers agree to…

Real interest rate (percent per year) SLF1 b SLFO SLF2 Loanable funds (trillions of 2009 dollars) In the above figure, the economy is at point a on the initial supply of loanable funds curve SLFO. What happens if the real interest rate rises? O Nothing; the economy would remain at point a. O There would be a movement to a point such as b on supply of loanable funds curve SLFO- O The supply of loanable funds curve would shift rightward to a curve such as SLF 2. O The supply of loanable funds curve would shift leftward to a curve such as SLF1.

Real interest rate (percent per year) SLF1 b SLFO SLF2 Loanable funds (trillions of 2009 dollars) In the above figure, the economy is at point a on the initial supply of loanable funds curve SLFO. What happens if the real interest rate rises? O Nothing; the economy would remain at point a. O There would be a movement to a point such as b on supply of loanable funds curve SLFO- O The supply of loanable funds curve would shift rightward to a curve such as SLF 2. O The supply of loanable funds curve would shift leftward to a curve such as SLF1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Caroline purchases new ovens for her cupcake-baking business. Antonio buys a government bond. Dmitri takes out a loan and uses it to build a new cabin in Montana. Frances purchases stock in Pherk, a pharmaceutical company.
Figure 32-1 percent 8 10 20 30 40 50 60 70 $billions Refer to Figure 32-1. In the Figure shown, if the real interest rate is 6 percent, the quantity of loanable funds demanded is O A. $20 billion, and the quantity supplied is $40 billion. O B. $20 billion, and the quantity supplied is $60 billion. O C. $60 billion, and the quantity supplied is $20 billion. O D. $60 billion, and the quantity supplied is $40 billion.
Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 1O percent per year, $13 million at an interest rate of 9 percent per year, $14 million at an interest rate of 8 percent per year, and so on. If the supply of loanable funds is fixed at $18 million, what will be the equilibrium interest rate? Instructions: Enter your answer as a whole number. percent per year
4. Assume that the economy is described by the following equations: Y=C+l+G, Y=8490, G-2719, T-2056, C-258+ 1/2(Y-T), I-400 + 40r. Private saving and the equilibrium interest rate are O Private saving: 2959; The interest rate: 47.4 O Private saving: 2296; The interest rate: 23.7 O Private saving: 2296; The interest rate: 47.4 O Private saving: 2959; The interest rate: 23.7
pls also do the graph
The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. Supply 5 Demand 1 100 200 300 400 500 600 LOANABLE FUNDS (Billions of dollars) is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied Suppose the interest rate is 3.5%. Based on the previous graph, the quantity of loanable funds supplied is than the quantity of loans ▼ of loanable funds. This would encourage lenders to the interest rates they charge, thereby demanded, resulting in a the quantity of loanable funds supplied and the quantity of loanable funds demanded, moving the market toward 0% the equilibrium interest rate of INTEREST RATE (Percent)
The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. 10 Supply 8 Demand 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied increases v Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is v than the quantity of loans demanded, resulting in a v of loanable funds. This would encourage lenders to v the interest rates they charge, thereby v the quantity of loanable funds supplied and v the quantity of loanable funds demanded, moving the market toward the equilibrium interest rate of 5% . INTEREST RATE (Percent)
Refer to the figure below to answer the following questions. Real interest rate (percent per year) CON 6 5 4 3 2 1 0 H H Select one: DLF₂ DLFO 0.5 1.0 1.5 2.0 Loanable funds (trillions of 2002 dollars) DLF₁ Refer to Figure 23.2.2. In Figure 23.2.2, a decrease the real interest rate will result in a movement from point E to A. point F. B. point G. C. point H. D. point. O E. either point G or point F. Figure 23.2.2
PLEASE ANSWER ALL QUESTIONS NOT JUST SOME PLEASE WRITE THE EXACT NUMBERS FOR THE GRAPH. PLEASE READ CAREFULLY, THIS MAY BE A SIMILAR QUESTION, BUT ALL QUESTIONS ARE DIFFERENT
4. Suppose gross saving in the United States is 20 percent of Gross National Product (GNP). a. If business saving is 15 percent of GNP and government saving is 4 percent of GNP, what percent of GNP is personal saving?b. Explain why a federal budget surplus increases national saving while a budget deficit decreases national saving.c. How can a federal budget deficit increase market equilibrium interest rates and reduce private investment and future economic growth?
4.5
Exhibit 18-4 Total Spending (billions of dollars) 2015 2016 C 3,906 4,140 O $717 billion O $1,079 billion $737 billion I $1,816 billion 737 797 G O Not enough information is given. 1,099 According to the data in Exhibit 18-4, 2015 national saving equaled 1,132 X -20 -30