Write out supply of loans formula-loan market in equilibrium

Assignment Help Business Economics
Reference no: EM13886818

a. Write out the supply of loans formula and use it to show what will happen to the supply of loans if private saving rises, then complete this sentence: If private saving rises, the supply of loans curve will ____________________________.

b. What effect will the change in part “a” have on the real interest rate?

It will make the real interest rate ____________________________.

c. Draw a graph showing the loan market in equilibrium. Show the changes you described in parts “a” and “b.” Be sure to label each axis, all curves, and the initial and final real interest rates.

d. Write out the supply of loans formula and use it to show what will happen to the supply of loans if capital outflows rise, then complete this sentence: If capital outflows rise, the supply of loans curve will ­____________________________.

e. What effect will the change in part “d” have on the real interest rate?

It will make the real interest rate ____________________________.

f. Draw a graph showing the loan market in equilibrium. Show the changes you described in parts “d” and “e.” Be sure to label each axis, all curves, and the initial and final real interest rates.

Reference no: EM13886818

Questions Cloud

Estimate the increase in pressure from the inside : Estimate the increase in pressure from the inside of the pipe to the outside of the pipe midway through the elbow if the radius of curvature of the elbow averages 4 cm at the midway section.
Distinguish of controls reliance audit and substantive audit : Distinguish between a controls reliance audit and a substantive audit. Which approach should an auditor consider to be most effective?
List factors that would lead auditors to assess control risk : List the factors that would lead auditors to assess control risk at a higher level. Discuss the techniques that the auditor uses to understand management's risk assessment and other internal control components.
Simultaneous increase in supply and decrease in demand : Thoroughly and accurately graph a simultaneous increase in supply and a decrease in demand. Explain what is happening in your graph and why.
Write out supply of loans formula-loan market in equilibrium : Write out the supply of loans formula and use it to show what will happen to the supply of loans if private saving rises, then complete this sentence: If private saving rises, the supply of loans curve will_. Draw a graph showing the loan market in e..
Discuss the issues that women lobbied to secure in america : Define "feminism." Explain what the Women's Movement has in common with other important movements for social change, such as the Civil Rights Movement or the Labor Movement. Discuss the issues that women lobbied to secure in America
Fair value accounting might increase information risk : 1.Explain how the move towards greater use of fair value accounting might increase information risk.
Designing and implementing a financial information system : Designing and implementing a financial information system for a private company.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd