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Author Question: When there is a shortage of loanable funds, the real interest rate will increase. Explain whether ... (Read 57 times)

ereecah

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  • Posts: 530
on: Jun 29, 2018
When there is a shortage of loanable funds, the real interest rate will increase. Explain whether the previous statement is correct or not.
 
  What will be an ideal response?

Question 2

The market demand curve for iPads is the ________ of all the individual demand curves for iPads.
 
  A) horizontal product
  B) horizontal sum
  C) vertical sum
  D) vertical product

Question 3

Which of the following is an asset of the Fed?
 
  A) Mortgage-backed securities
  B) currency
  C) reserves of depository institutions
  D) Both answers B and C are correct.


mcomstock09

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is correct. The shortage of loanable funds means that there are firms and others attempting to obtain loans who cannot do so. As a result, the real interest rate rises until equilibrium is attained.

Answer to Question 2

How great was that.Thank you so much.

Answer to Question 3

A


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