Explain how each of the following events affect the supply of ...

[urbanoutfitters]

Explain how each of the following events affect the supply of loanable funds curve:
 
  a) The economy is in a recession so people's disposable income is lower.
  b) The stock market is booming so the people's wealth is higher.
  c) Fewer college graduates are finding jobs so expected future income is lower.
  d) The real interest rate increases.

Question 2

If a person will rent an apartment only to married couples over 30 years old, that person is allocating resources using a ________ allocation method.
 
  A) first-come, first-served
  B) market price
  C) personal characteristics
  D) command

Question 3

Currently kidneys are allocated based on the needs of each perspective recipient, their blood type, and the urgency of their case. An alternative way to allocate kidneys is to go by the order in which patients were placed on the waiting list.
 
  In that case, the allocation of resources is made using A) market price.
  B) auction.
  C) first-come, first-served.
  D) personal characteristics.

[Beatricemm]

Answer to Question 1

a) Disposable income is lower, so saving is decreased. The supply of loanable funds curve shifts leftward.
b) People are wealthier, so they save less. The supply of loanable funds curve shifts leftward.
c) Expected future income is lower, so people save more. The supply of loanable funds curve shifts rightward.
d) The quantity of saving increases. There is an upward movement along the supply of loanable funds curve but no shift in the curve.

Answer to Question 2

Thank you

Answer to Question 3

C

[urbanoutfitters]

Thank you

[Beatricemm]

No problemo