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 31 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
YES! Correct, THANKS for helping me on my review

apple

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Volvulus. A volvulus results when the small intestine twists, causing an obstruction that can lead t Volvulus. A volvulus results when the small intestine twists, causing an obstruction that can lead t
Laminar flow hood. Laminar flow hood.
Vitamins Absorbing in the small intestine Vitamins Absorbing in the small intestine
A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ... A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ...
Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene
Rate order question Rate order question
Video: Sperm Formation

For a complete list of videos, visit our video library