Homework Answers
A decrease in the tax incentive in the market to the firms will decrease the demand for the loanable fund and shift the demand curve to the left. It will decrease the interest rate and quantity of savings in the market
The answer is "D". firms find it unprofitable and decrease the demand
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Businesses in some parts of Canada are eligible for The Atlantic Investment Tax Credit, a 10%...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of the following curves would this quota shift? a. supply of loanable funds left b. demand for loanable funds left c. demand for Canadian dollars right d. supply of Canadian dollars left 8. Suppose the Canadian government imposed import quotas on agricultural products. According to the foreign-currency exchange market diagram, which of the following outcomes would most likely result? a. Both the demand and supply curves...
Explain Q 12 Why cant i answer that cut government spending decrease the demand. ont giver mort spending derease Int...
Explain Q 12
Why cant i answer that cut government spending decrease the
demand.
ont giver mort spending derease Interest rate thent Suppose that the new Prime Minister acts to cut government spending and, by doing so, eliminate the current federal government budget deficit. 12. In the loanable funds market, in which direction does the relevant curve shift? The supply curve for loanable funds shifting to the right there are more funds supplied at any given interest rate. 13. Does...
For some reason, the expectations for future inflation increases dramatically. what effect would this have on...
For some reason, the expectations for future inflation increases
dramatically. what effect would this have on the loanable funds
market?
A. The demand for loanable funds would increase thus increasing
the interest rate level.
B, The demand for loanable funds would decrease thus increasing
the interest rate level.
C. The Supply for loanable funds would increase thus increasing
the interest rate level.
D. The Supply for loanable funds would decrease thus decreasing
the interest rate level.
2. For some reason,...
An investment tax credit will cause A. the demand for loanable funds to increase. B. the...
An investment tax credit will cause A. the demand for loanable funds to increase. B. the supply of loanable funds to increase C. Both A and B D. None of the above
\ **each option is fall or rise // or increase or decrease *** causes the gov...
\
**each option is fall or rise // or increase or decrease
*** causes the gov to run a budget SURPLUS or Deficit
(options)
**** last they want the graph curve shifted to reflect Scenario
3
10. 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...
6.For an economy that engages in international trade, GDP is divided into four components. Which of...
6.For an economy that engages in international trade, GDP is divided into four components. Which of the following items is not one of those components? a. Consumption. b. Taxes. c. Government purchases. d. Net exports. 7. The slope of the demand for loanable funds curve represents the a. positive relation between the real interest rate and investment. b. negative relation between the real interest rate and investment c. positive relation between the real interest rate and saving d. negative relation...
Question 10 Many states do have which impose an upper limit on the interest rate that...
Question 10 Many states do have which impose an upper limit on the interest rate that lenders can charge. price ceiling laws usury laws price floor laws minimum interest rate Question 7 Real interest 1.5 20 Loane fund t 25 30 ons of 2009 dolar) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then there will be government intervention in the market to make sure there is no credit crisis. there will...
9. Refer to the Figure13-2. If the economy were initially in equilibrium at r0 and E0...
9. Refer to the Figure13-2. If the economy were initially in equilibrium at r0 and E0 and the government removed import quotas, what would happen to the exchange rate? a. It would appreciate to E1. b. It would appreciate to E2. c. It would depreciate to E1. d. It would depreciate to E2. ____ 10. When a country experiences capital flight, which of the following best explains the effects? a. The interest rate falls because the demand for loanable funds shifts left....
10. The real interest rate is the (x) real rate of return to the lender. (y)...
10. The real interest rate is the (x) real rate of return to the lender. (y) real cost of borrowing to the borrower. (z) nominal interest rate plus the rate of inflation. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only 13. If there is a shortage of loanable funds, then A. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity...
(Decrease or Increase) Attempts: Keep the Highest: /4 5. The market for loanable funds and government...
(Decrease or Increase)
Attempts: Keep the Highest: /4 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...
Explain Q 12
Why cant i answer that cut government spending decrease the
demand.
ont giver mort spending derease Interest rate thent Suppose that the new Prime Minister acts to cut government spending and, by doing so, eliminate the current federal government budget deficit. 12. In the loanable funds market, in which direction does the relevant curve shift? The supply curve for loanable funds shifting to the right there are more funds supplied at any given interest rate. 13. Does...
For some reason, the expectations for future inflation increases
dramatically. what effect would this have on the loanable funds
market?
A. The demand for loanable funds would increase thus increasing
the interest rate level.
B, The demand for loanable funds would decrease thus increasing
the interest rate level.
C. The Supply for loanable funds would increase thus increasing
the interest rate level.
D. The Supply for loanable funds would decrease thus decreasing
the interest rate level.
2. For some reason,...
\
**each option is fall or rise // or increase or decrease
*** causes the gov to run a budget SURPLUS or Deficit
(options)
**** last they want the graph curve shifted to reflect Scenario
3
10. 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...
6.For an economy that engages in international trade, GDP is divided into four components. Which of the following items is not one of those components? a. Consumption. b. Taxes. c. Government purchases. d. Net exports. 7. The slope of the demand for loanable funds curve represents the a. positive relation between the real interest rate and investment. b. negative relation between the real interest rate and investment c. positive relation between the real interest rate and saving d. negative relation...
Question 10 Many states do have which impose an upper limit on the interest rate that lenders can charge. price ceiling laws usury laws price floor laws minimum interest rate Question 7 Real interest 1.5 20 Loane fund t 25 30 ons of 2009 dolar) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then there will be government intervention in the market to make sure there is no credit crisis. there will...
(Decrease or Increase)
Attempts: Keep the Highest: /4 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...
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