The demand for loanable funds curve shifts in response to changes ...

[silviawilliams41]

The demand for loanable funds curve shifts in response to changes in
 
  A) the amount of household savings.
  B) the expected future disposable income.
  C) expected profits.
  D) the real interest rate.
  E) wealth.

Question 2

If the current account balance is 235 billion and U.S. official reserves increased by 35 billion, what is the official settlements account balance and the capital and financial account balance?
 
  What will be an ideal response?

[okolip]

Answer to Question 1

C

Answer to Question 2

The official settlements account equals the negative of the change in official reserves, so the official settlements account balance is -35 billion. Then, the sum of the current account balance plus the capital and financial account balance plus the official settlements account balance equals zero, which means that the capital and financial account balance must equal 200 billion.

[silviawilliams41]

YES! Correct, THANKS for helping me on my review

[Mochi]

Great answer, keep it coming