Answered: With an increase in the margin…

With an increase in the margin requirement, availability of credit in the economy: a. Increases b. Decreases c. Unchanged d. None of these

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 8P

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Question

With an increase in the margin requirement, availability of credit in the economy:

a. Increases

b. Decreases

c. Unchanged

d. None of these

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Other things the same, an increase in the budget deficit A. shifts the supply of loanable funds left, so the interest rate rises. B. shifts the demand for loanable funds right, so the interest rate rises. C. shifts the demand for loanable funds left, so the interest rate falls. D. shifts the supply of loanable funds right, so the interest rate falls.
Question 1 a. Use the loanable funds diagram to explain how you would expect an increase in inflationary expectations to affect: b. A. the supply and demand schedule c. The nominal rate of interest d. An increase desire to save for old age e. A reduction in taxes on income from saving
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