**Educational Website Content: Market for Loanable Funds**### Instruction:Use the following graph to show the effects on the Market for Loanable Funds of many people deciding to play the lottery rather than save money for retirement.**Instructions:** Drag the supply curve to illustrate the appropriate change in supply.### Graph Explanation:**Title:** Market for Loanable FundsThis graph displays the relationship between interest rates and the dollar volume of savings and investment within the market for loanable funds.- **Axes:** - The horizontal axis represents the "Dollar volume of Savings, Investment," ranging from 0 to 100. - The vertical axis represents the "Interest Rate," ranging from 0 to 100.- **Curves:** - **Supply (Savings) Curve:** Depicted by an upward-sloping blue line. This curve reflects how the amount of savings supplied to the market increases as the interest rate rises. - **Demand (Investment) Curve:** Represented by a downward-sloping red line, indicating how the quantity of investment demanded decreases as the interest rate grows.- **Equilibrium Point:** - The point where the supply and demand curves intersect denotes the equilibrium in the market for loanable funds. At this point, the interest rate and the dollar volume of savings and investment are balanced.**Note:** The exercise involves adjusting the supply curve to demonstrate the impact of people opting to play the lottery instead of saving, which would likely decrease the supply of savings available in the market.

If the people decides to play lottery rather than save money for investment then it leads to a fall…

Answered: to show the on the Market for Loanable…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Wall Street Journal Article Answers 1-3 Asap Please!
Explain the impact of interest rate reduction in the housing sector. Draw diagrams to show the transition from a short run to a long run in a perfectly competitive market.
If, at a given interest rate, the quantity of savings supplied is less than the quantity of investment demanded, what can we conclude? A) B) C) D) There is a shortage of savings and real interest rates will fall. There is a surplus of savings and real interest rates will fall. There is a surplus of savings and real interest rates will rise. There is a shortage of savings and real interest rates will rise. Show Transcribed Text Which of the following does NOT occur in an economy experiencing full employment? underemployment A) B) structural unemployment C) cyclical unemployment D) frictional unemployment S Show Transcribed Text If professors lose their positions at universities because of the widespread introduction of courses over the Internet, what would faculty members that remained unemployed be considered? underemployed structurally A) B) unemployed frictionally C) unemployed cyclically D) unemployed. S
5. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Treat each scenario separately by resetting the graph to its original state before examining the effect of each individual scenario. (Note: You will not be graded on any changes you make to the graph.) Customize and control Google Chrome Supply Demand Supply Demand LOANABLE FUNDS (Billions of dollars) Scenario 1: Individual Retirement Accounts (IRAS) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year. INTEREST RATE (Percent)
4. The market for loanable funds and government policy The following graph shows the loanable funds market. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Consider each scenario separately by returning the graph to its starting position when moving from one scenario to the next. (Note: You will not be graded on any changes you make to the graph.) INTEREST RATE (Percent) Supply LOANABLE FUNDS (Billions of dollars) Demand Demand Supply
1
Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases? A. Present value increases B. Present value is not affected C. Present value declines
66
Macmillan Learning U The graph depicts the market for loanable funds. Shift the appropriate curves to indicate what will happen to the market if there is an improvement in the technology firms use in production. As a result of this change, the real interest rate is now % Real interest rate 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 and the quantity of funds is $ billion. 0.5 Supply Demand 0.0 0 5 10 15 20 25 30 35 40 45 50 Loanable funds (in billions)
QUESTION 1 Under what conditions that a discount bond has a negative nominal interest rate? Is it possible for a coupon bond or perpetuity to have a negative nominal interest rate? a)
10. What is the present value of a perpetuity of $100 if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?
5. The market for loanable funds and government policy The following graph shows the loanable funds market. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Consider each scenario separately by returning the graph to its starting position when moving from one scenario to the next. (Note: You will not be graded on any changes you make to the graph.) INTEREST RATE (Percent) Supply LOANABLE FUNDS (Billions of doll Demand -0- Demand 10 Supply

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