ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 13, Problem 6P

A

To determine

The effect on the market interest rate when the purchase price of capital increases:

  1. An increase in the productivity of capital.
  2. A shift in preference toward present consumption and away from future consumption.

Concept Introduction:

The market of the loanable fund is similar to the market of any good the price of the loanable fund is the interest rate.

B

To determine

The effect on the market interest rate when productivity of capital increases:

Concept Introduction:

The market of the loanable fund is similar to the market of any good the price of the loanable fund is the interest rate.

C

To determine

The effect on the market interest rate when there is a shift in preference toward present consumption and away from future consumption

Concept Introduction:

The market of the loanable fund is similar to the market of any good the price of the loanable fund is the interest rate.

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