The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate (blank 1) and quantity (blank 2) in the capital financial market? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate (blank 3) and quantity (blank 4).
The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate (blank 1) and quantity (blank 2) in the capital financial market? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate (blank 3) and quantity (blank 4).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates.
- What is the equilibrium interest rate (blank 1) and quantity (blank 2) in the capital financial market?
Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate.
- Calculate the new equilibrium interest rate (blank 3) and quantity (blank 4).
Transcribed Image Text:Qd
Interest Rate
Qs
5%
130
170
6%
135
150
7%
140
140
8%
145
135
9%
150
125
10%
155
110
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