Suppose the long-term real interest falls. In the (private sector) loanable funds market. the result will be. a. the demand for loanable funds curve shifts to the right b. the supply of loanable funds curve shifts to the left c. the demand for Ioanable funds curve does not shift to the right nor does the supply of loanable funds cunve shift to the left d. the demand for loanable funds curve shifts to the right and the supply of loanable funds curve shifts to the left

Q: Explain and draw each of the following parts (A,B,C), with each explantion given below: ( Graph…

A: A. Market for loanable fund The loanable funds market does have a supply and demand curve as well as…

Q: Other things the same, people in the U.S. would want to save more if the real interest rate in the…

A: Savings is a positive function of interest rate according to the Classical model while it is a…

Q: The explanation for the slope of the     A.  supply of loanable funds curve is based on the…

A: The supply of loanable funds curve represents the relationship between the quantity of loanable…

Q: Increases in investment spending cause interest rates to increase. a. Ohouseholds will voluntarily…

A: True, because when the interest rate in the economy increases, the opportunity cost of consumption…

Q: Use the analysis for the market for loanable funds diagram to illustrate and explain how the…

A: The equilibrium in the loanable funds market occurs at such an interest rate where the demand for…

Q: When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases…

A: Loanable fund market consists of supply and demand of loanable funds.  The supply of loanable fund…

Q: Suppose government  moves to increase its budget deficit by $30million. With aid of the market for…

A: A loanable funds market is one where households and financial institutions supply these funds to the…

Q: 1g. public sa are they related? Explain it.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the effect of technological innovations on loanable funds market?

A: Technological innovation refers to the situation when a firm is using an advanced technology that…

Q: If foreign income and wealth decrease, this would most likely a. not affect the market for loanable…

A: If foreign income and wealth decrease, this would most likelya. not affect the market for loanable…

Q: in a loanable funds model the economy is at its longrun equilibrium and suddenly there is a rise in…

A: Loanable funds model explains the situation of the capital market where households engaged in a…

Q: When does the supply of loanable funds increase? The supply of loanable funds increases when…

A: Financial institutions acts as intermediaries between the lenders and the borrowers . The deposits…

Q: 1a. What happens in the loanable funds market when legislation passes that gives tax credits to…

A: When legislation passes that gives tax credits to buyers, it may have several consequences at the…

Q: 1. Explain the difference between public & private saving.

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: The figure shows a supply-of-loanable-funds curve and two demand-for-loanable-funds curves.

A: Demand for loanable funds refers to funds demanded for investment purposes at each possible value of…

Q: 12. Which of the following is most likely to cause an increase in demand for loanable funds? (A)…

A: The demand for loanable funds reflects how borrowers in an economy act and the quantity of loans…

Q: Explain the impact of the government's Saving incentives on the market for loanable funds?

A: Government's savings incentives implies that government is providing incentives to encourage…

Q: 1. Suppose the government borrows $20 million more next year than this year. a. Draw and fully label…

A: Answer: (d). The elasticity of the supply of loanable funds shows that if the interest rate changes…

Q: he loanable funds model suggests that increased government spending, financed by borrowing, will…

A: The loanable funds model is an economic model that illustrates the market for loanable funds, where…

Q: a. Suppose there are two types of investment in the economy: business fixed investment and…

A: The total amount of money that individuals and institutions in an economy have agreed to save and…

Q: Question 1 a. Use the loanable funds diagram to explain how you would expect an increase in…

A: Loanable funds market shows that how demand and supply of loanable funds affect interest rates and…

Q: Consider the market for loanable fund. Answer the question below. 2.a. The market equilibrium…

A: Please find the answer below.

Q: _______ raises the equilibrium real interest rate and decreases the equilibrium quantity of loanable…

A: In the loanable funds, an increase in real interest rate with a decrease in the equilibrium quantity…

Q: When the government funds spending projects by borrowing money (issuing government bonds), demand in…

A: Demand for loanable funds illustrates the inverse relationship between interest rate and quantity of…

Q: A government budget deficit occurs, which The real interest rate O A. decreases the supply of…

A: When government faces budget deficit, its expenditure exceeds its revenue. Inorder to meet that…

Q: What is the effect of an increase in the tax rate on interest income on the supply of and the demand…

A: When the tax rate on interest income increases, it reduces the after-tax return on investments such…

Q: Suppose the government runs fewer budget deficit and there is a decrease in the average household…

A: Here, it is given that government has fewer budget deficit, which influence the demand for loanable…

Q: The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. B C A…

A: The supply of loanable funds is the curve representing the relationship between the quantity of…

Q: 4. What is a government budget deficit? How does it affect interest rate, investment, and economic…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Suppose the government borrows $20 million more next year than this year. a. How does the…

A: In an economy, governement borrowings affects the equilibrium level in the loanable funds market as…

Q: Suppose the market for loanable funds is currently in equilibrium. Which of the following factors…

A: 1. An rise in business confidence (c) is likely to result in an increase in interest rates in a…

Q: 9. Which are not a determinant of the supply of loanable funds a. tax incentives b. new technology…

A: The market for loanable funds tells that how borrowing happens. The supply of loanable funds depends…

Q: Usually, when the supply of loanable funds increases, then interest rates Select one: a. Might…

A: Supply: It means the total amount of a good or service that is available to consumers.

Q: Consider the loanable funds market outlined above. Which of the following could explain a shift from…

A: The market for loanable capital connects savers and borrowers. The equilibrium interest rate, which…

Q: Using a graph for the loanable funds market of this economy, show what are the effect on the…

A: The market for loanable funds describes how borrowing happens in the market. The supply of loanable…