Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 10 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 $16 million, what will be the equilibrium interest rate? Instructions: Enter your answer as a whole number. * percent per year
Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 10 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 $16 million, what will be the equilibrium interest rate? Instructions: Enter your answer as a whole number. * percent per year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 10
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 $16 million, what will be the equilibrium interest rate?
Instructions: Enter your answer as a whole number.
* percent per year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b776bf2-d29f-42e1-9bec-7245aff8b9b9%2Fe3144e42-c9b2-4eb3-8be0-5d18540591b5%2F0yv89l_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 10
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 $16 million, what will be the equilibrium interest rate?
Instructions: Enter your answer as a whole number.
* percent per year
![Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves
$30 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will
yield 40 bushels of wheat per acre.
Instructions: Enter your answers as a whole number.
a. If the price at which wheat can be sold is $6 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most
that any farmer would pay to rent your 20 acres?
$
b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $7 per bushel?
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b776bf2-d29f-42e1-9bec-7245aff8b9b9%2Fe3144e42-c9b2-4eb3-8be0-5d18540591b5%2Fn6yxig8_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves
$30 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will
yield 40 bushels of wheat per acre.
Instructions: Enter your answers as a whole number.
a. If the price at which wheat can be sold is $6 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most
that any farmer would pay to rent your 20 acres?
$
b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $7 per bushel?
%24
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