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

Author Question: Using the above figure, which of the following is CORRECT? A) 1 guilder will sell for 2. B) 1 ... (Read 74 times)

kodithompson

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
Using the above figure, which of the following is CORRECT?
 
  A) 1 guilder will sell for 2.
  B) 1 dollar will sell for 1/2 guilder.
  C) A shortage of guilders exists at an exchange rate above 0.60.
  D) A surplus of guilders exists at an exchange rate above 0.60.

Question 2

In the loanable funds market, what variable changes to eliminate a shortage of loanable funds and how is the shortage eliminated?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chloejackso

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The real interest rate changes to eliminate the shortage of loanable funds. A shortage of loanable funds means that businesses and others want to borrow more than households and others are willing to loan so that the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied. This shortage means that some businesses are willing to pay a higher interest rate. The real interest rate rises, and as it does so, the quantity of loanable funds demanded decreases and the quantity of loanable funds supplied increases. Both changes help eliminate the shortage of loanable funds and so the real interest rate rises until it reaches its equilibrium value.


kodithompson

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
Wow, this really help

daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

The conduction system of the heart; traces the path of the electrical impulse that stimulates the he The conduction system of the heart; traces the path of the electrical impulse that stimulates the he
The paleoanthropologist must understand these deformations in order to figure out which strata a fos The paleoanthropologist must understand these deformations in order to figure out which strata a fos
Caravaneer on a camel, China. Tang dynasty, (618–907). Polychrome terra-cotta figure. Caravaneer on a camel, China. Tang dynasty, (618–907). Polychrome terra-cotta figure.
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Mobilize knuckles with figure-8s. Turn the hand so palm faces the table. Grasp the proximal phalange ... Mobilize knuckles with figure-8s. Turn the hand so palm faces the table. Grasp the proximal phalange ...
Using the measuring device to give the correct dose to children Using the measuring device to give the correct dose to children
Video: SNP Polymorphysim Microarray Chip - How to Test a Person's DNA

For a complete list of videos, visit our video library