This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How does each of the following shift the supply of loanable funds and the demand for loanable funds ... (Read 179 times)

dejastew

  • Hero Member
  • *****
  • Posts: 562
on: Jun 29, 2018
How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
 
  a. Households' disposable incomes increase
  b. An increase in expected profit

Question 2

Surplus value that is lost because something is keeping the market from functioning as well as it can is known as ________.
 
  Fill in the blank(s) with correct word


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

catron30

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: Jun 29, 2018
Answer to Question 1

a. Saving increases and the supply of loanable funds curve shifts rightward. The real interest rate falls and the quantity of loanable funds increases.
b. Investment demand increases and the demand for loanable funds curve shifts rightward. The real interest rate rises and the quantity of loanable funds increases.

Answer to Question 2

deadweight loss


dejastew

  • Member
  • Posts: 562
Reply 2 on: Jun 29, 2018
Excellent

kjohnson

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Connect a fused jumper wire to supply 12 volts to terminal 86 and a ground to terminal 85 of the ... Connect a fused jumper wire to supply 12 volts to terminal 86 and a ground to terminal 85 of the ...
Tai chi walk along straight line. From tai chi stance, shift weight to the back leg and turn the ... Tai chi walk along straight line. From tai chi stance, shift weight to the back leg and turn the ...
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
China has relied on cheap coal to meet its demand for energy China has relied on cheap coal to meet its demand for energy
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
Blood Supply of the Liver Blood Supply of the Liver
Video: Introduction to Autism

For a complete list of videos, visit our video library