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

Author Question: Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate ... (Read 77 times)

cyc028

  • Full Member
  • ***
  • Posts: 151
on: Oct 12, 2022
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 an increase in per capita income. What will be the effect in the capital market?
◦ The interest rate will fall below 2.5% and the quantity of investment demanded will increase.
◦ The interest rate will fall below 2.5% and the quantity of saving supplied will increase.
◦ The interest rate will rise above 2.5% and the quantity of investment demanded will decrease.
◦ There will be an indeterminate effect on the interest rate and an increase in the equilibrium level of investment and saving.
◦ The interest rate will rise above 2.5% and the quantity of saving supplied will increase.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cyc028 on Oct 12, 2022

labrinker

  • Full Member
  • ***
  • Posts: 162
Reply #1 on: Oct 12, 2022
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


cyc028

  • Member
  • Posts: 151
Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it

rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

The characteristically small and relatively short-legged reindeer from Svalbard The characteristically small and relatively short-legged reindeer from Svalbard
Small Feline Small Feline
An investment versus a bill An investment versus a bill
Effects of Elevation on Heart Rate and Ventilation Effects of Elevation on Heart Rate and Ventilation
A Karman Vortex air flow sensor uses a triangle-shaped rod to create vortexes as the air flows ... A Karman Vortex air flow sensor uses a triangle-shaped rod to create vortexes as the air flows ...
Flow chart for the diagnosis of hepatitis C. Hepatitis C reporting using the signal-tocutoff ratio. Flow chart for the diagnosis of hepatitis C. Hepatitis C reporting using the signal-tocutoff ratio.
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library