What impact did COVID-19 have on loaning insttiutions such as banks and private loaning companies. b) Explain this using the demand and supply of loanable funds model
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A) What impact did COVID-19 have on loaning insttiutions such as banks and private loaning companies.
b) Explain this using the
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- Given demand and supply for loanable fund Market at given time period in the table below Quantity of loanable fund demanded (billion $) Real Quantity of loanable fund supplied (billion $) interest rate 0.5 400 120 0.75 380 140 1 360 160 180 1.25 340 1.5 320 20 1.75 300 220 280 240 2.25 260 260 2.5 240 280 2.75 220 300 3 200 320 3.25 180 340 3.5 160 360 3.75 140 380 4 120 400 Instructions: 1. Using excel, find the equilibrium real interest rate and quantity of loanable fund, show the point on the graph. 2. If this country experiences an expansion business cycle phase that increases the demand for loanab fund by $40 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. 3. Starting from the original equilibrium If there is a decreases in aggregate income that decreases supply for loanable fund by $20 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. (antity demanded Intel X News Ewers/antity-demanded-interest-rate-f-loanable-funds-quantity-supplied-of-loanable-funds-percent-85-4-72-8/ff6a6a9e-b347-47ae- Paraphrasing Tool -... WhatsApp https://www.office.c... Online Assessment... Brown Start your trial now! First week only $4.99! → s he 43 ert AGE Sec Notes-Macroeconomics m Login - Manipal Ed... Table below shows total demand and supply of loanable funds (in RM billions) in an imaginary economy. Quantity demanded of loanable funds X 85 80 75 70 65 60 Q Search Interest rate (percent) 4 6 8 10 12 14 Quantity supplied of loanable funds 72 73 75 7 79 81 A. Graph the market for loanable fund of this economy based on the data above and indicate the equilibrium quantity of loanable funds. 77 B. Calculate the surplus or shortage at each level of interest rate. C. suppose the demand for loanable funds increases by RM 7 billion at each level of interest rate, indicate the effect of this changes on the equilibrium interest rate and quantity of…What impact will a decrease in investor confidence have on the Market for Loanable Funds? A) Increase Supply B) Decrease Demand C) Increase Demand D) Decrease Supply
- x + nswers/antity-demanded-interest-rate-f-loanable-funds-quantity-supplied-of-loanable-funds-percent-85-4-72-8/ff6a6a9e-b347-47ae-9708-95 WhatsApp. https://www.office.c... Online Assessment... Brown ring illust : antity demanded Inter X News rts he antity ed li g Eco 7 15443 obert = SAGE Sec Notes - Macroeconomics Login - Manipal Ed... e similar textbooks Paraphrasing Tool -... Table below shows total demand and supply of loanable funds (in RM billions) in an imaginary economy. Start your trial now! First week only $4.99! → Quantity demanded Interest rate Quantity supplied of of loanable funds (percent) loanable funds Q Search 85 80 75 70 65 60 4 68 0 121 72 73 75 77 79 81 A. Graph the market for loanable fund of this economy based on the data above and indicate the equilibrium quantity of loanable funds. B. Calculate the surplus or shortage at each level of interest rate. C. suppose the demand for loanable funds increases by RM 7 billion at each level of interest rate, indicate the…Question 5 Use the analysis for the market for loanable funds diagram to illustrate and explain how the following government policy affect the economy's saving and investment. Policy 1: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement savings plans (RRSPS). Your response should answer the following questions: a. State and explain which loanable funds curve would this policy affect? b. Which way would the loanable funds curve shift? c. What would be the impact on interest rates? Draw the loanable funds diagram to illustrate your answers for a to c.What impact will increases in income have on the Market for Loanable Funds? A) Decrease Supply B) Decrease Demand C) Increase Demand D) Increase Supply
- How can we determine the real (inflation-free) rate of return for a bond?What motivations and constraints apply to students who are considering differentschools and loan options? What motivations and constraints apply to private lendersWhat impact will increases in Time Preferences have on the Market for Loanable Funds? A) Increase Supply B) Decrease Supply C) Decrease Demand D) Increase Demand
- ? 4:04 classroom.google.com 1. Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly payments. The interest rate on the loan is 8% per year, compounded monthly. How much interest will Maya pay over the life of the loan? a. $384.48 c. $219.81 d. $197.40 b. $778.00 2. An amount of $1500 is deposited semi-annually for two years into a fund that pays 10.5% per year, compounded semi-annually. Use a TVM Solver to determine the future value of this annuity. a. $6079.21 c. $3078.75 d. $6489.25 b. $5871.01 3. Determine the monthly deposit needed to save $10 000 in three years if interest is earned at 3.5% per year, compounded monthly. a. $263.85 c. $250.13 d. $276.97 b. $293.02 4. Olivia invested $2000 at the end of every year into an RRSP fund that pays 8% per year, compounded annually. Calculate the value of Olivia's investment ten years after she started investing in the fund. $24 012.21 a. b. $28 973.12 c. $20 610.79 d. $13 420.16 5. Determine the…Describe the Financial Functions to determine a Loan's Principal andInterest Payments between two Payment Periods?The premier rate, the rate on corporate paper, the simple interest rate on a bank loan requiring interest to be repaid monthly, and the rate on an instalment loan based on add-on interest are each loan terms that should be defined and their relationships to one another should be discussed. Would each of these loans have the same effective yearly rate if the advertised rate on each of them was 5%? Explain.