« previous next »

Author Question: Which of the following occurs if the expected profit increases? A) Investment demand increases ... (Read 56 times)

justinmsk

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
Which of the following occurs if the expected profit increases?
 
  A) Investment demand increases and the demand for loanable funds curve shifts rightward.
  B) The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve.
  C) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve.
  D) The savings increases and the supply of loanable funds curve shifts rightward.
  E) Investment demand decreases and the demand for loanable funds curve shifts leftward.

Question 2

In the figure above, illustrate the effect of an increase in the U.S. interest rate. What is the effect on the foreign exchange rate?
 
  What will be an ideal response?


ankilker

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The figure above shows the effect of the increase in the U.S. interest rate. The demand for dollars increases and the demand curve shifts rightward. The supply of dollars decreases and the supply curve shifts leftward. The equilibrium exchange rate rises, to 100 yen per dollar in the figure.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

justinmsk

  • Hero Member
  • *****
  • Posts: 524
Reply #2 on: Jun 29, 2018
Correct answers!


ankilker

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

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?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo
Breast cancer. Notice the tumor growing within a lactiferous gland, which occurs in infiltrating duc Breast cancer. Notice the tumor growing within a lactiferous gland, which occurs in infiltrating duc
Functional MRI Scans These scans of human brains show localized average increases in neural activity Functional MRI Scans These scans of human brains show localized average increases in neural activity
Expected and Unexpected Reinforcers Expected and Unexpected Reinforcers
The transition between steps usually occurs at a temperature that would not interfere with cold ... The transition between steps usually occurs at a temperature that would not interfere with cold ...
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
Video: The Pressure Flow Model in a Plant

For a complete list of videos, visit our video library