This topic contains a solution. Click here to go to the answer

Author Question: Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate ... (Read 46 times)

dabomba718

  • Full Member
  • ***
  • Posts: 158
Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate is 2.5% and the equilibrium level of saving and investment is $4 billion. Now suppose, all else remaining equal, that there is sustained population growth over several years. What will be the effect in the capital market?
◦ An indeterminate effect on the flow of investment and saving and an increase in the equilibrium interest rate.
◦ An increase in the flow of investment and saving and an indeterminate effect on the equilibrium interest rate.
◦ An increase in the flow of investment and saving and an increase in the equilibrium interest rate.
◦ An indeterminate effect on the flow of investment and saving and a decrease in the equilibrium interest rate.
◦ An increase in the flow of investment and saving and a decrease in the equilibrium interest rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by dabomba718 on Oct 12, 2022

ellie

  • Full Member
  • ***
  • Posts: 168
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.
Answer Preview
Only 35% of students answer this correctly




dabomba718

  • Member
  • Posts: 158
Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)


hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

For a complete list of videos, visit our video library