option c is correct
The supply of loanable funds shifted rightward (this would lower interest rates as supply curve shifts to the right, at the same time, quantity of loanable funds at equilibrium would also increase assuming demand remains the same)
35) In 2002 mortgage rates fell and mortgage lending increased. Which of the following could explain...
Many interest rates in the United States recently fell. Which
of the following factors could not have been the cause?
Question 12 (Mandatory) (1 point) Many interest rates in the United States recently fell. Which of the following factors could not have been the cause? increase in the demand for loanable funds decrease in the demand for loanable funds increase in the supply of loanable funds
Recently, you observed both an increase in the price and quantity of wheat. These two outcomes could be the result of which of the following? a. Demand curve for wheat shifting rightward b. Demand curve for wheat shifting leftward c. Supply curve of wheat shifting rightward d. Supply curve of wheat shifting leftward
Many interest rates in the United Staes have fallen over the past couple of decades. Which of the following factors chould have been the cause? a. Increase in the demand for loanable funds b. Decrease in the demand for loanable funds c. Increase in the supply of loanable funds d. Decrease in the supply of loanable funds
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...
#5
the Greate nd discount- to explain close to high even lain why a d more to ar 2015. at a pre- 4. During the Great Depression of the nal interest rates were close to zero. Explain how real interest rates could be very high even though nominal interest rates were very low. (Hint: Prices fell during parts of the Great Depression.) 5. Assume that after you graduate, you get a job as the chief financial officer of a small...
Illustrate and briefly explain the beginning of a demand-pull inflation. 3. When answering parts a and b, draw the relevant Phillips curve. Using a short-run Phillips curve, what is the effect on the unemployment rate if the inflation rate unexpectedly rises. Using a long-run Phillips curve, what is the effect on the unemployment rate if the inflation rate rises and people expect the rise. Explain how your answer to part a about the unexpected rise in the inflation rate changes in...
1. which of the following will cause the demand of loanable funds curve to shift rightward? A) businesses are more confident in the future of the economy B) household’s wealth increases C) an increase in government regulations that make plant expansion difficult D) an increase in asset prices leading to a decrease in purchases of stocks and bonds 2. which of the following will cause the supply of loanable funds curve to shift rightward? A) An increase in the government...
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest rates to increase investment spending b. Increase the money supply to shift the aggregate demand curve rightward c. Reduce the interest paid on banks' reserves d. Decrease the money supply to shift the aggregate demand curve leftward
5) The Great Recession beginning in 2007 was caused by a) The Federal Government reducing spending. b) The rapid increase and subsequent decline in housing prices. c) Foreign countries reducing their demand for American Goods. d) Baby Boomers retiring from the economy. 6) Suppose that the economy is experiencing a recessionary gap. If you believe in "small government", then the most appropriate policy would be to a) Raise income taxes. b) Lower income taxes. c) Raise government spending. d) Lower...
Which of the following risk is not a determinant of interest rate in mortgage lending? a. Default risk b. Liquidity risk c. Currency exchange risk d. Interest rate risk.