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Author Question: Suppose households decide to reduce savings because they want to enjoy more present time than future ... (Read 93 times)

KWilfred

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on: Jul 1, 2018
Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
 
  A) interest rate goes down, and quantity of borrowed funds increases.
  B) interest rate goes down, and quantity of borrowed funds decreases.
  C) interest rate goes up, and quantity of borrowed funds decreases.
  D) interest rate goes up, and quantity of borrowed funds increases.

Question 2

How does a decrease in government budget deficits affect the equilibrium interest rate in the loanable funds model?
 
  A) Interest rate increases.
  B) Interest rate decreases.
  C) Interest rate stays the same.
  D) Interest rate first increases and then decreases back to the original level.
Microeconomics ¦ Perloff ¦ 8th Edition
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cascooper22

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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KWilfred

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Reply #2 on: Jul 1, 2018
Thank you :)


cascooper22

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Reply #3 on: Jul 1, 2018
Happy to help you


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