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

Author Question: The amount of money that people wish to hold to use in transactions varies directly with A) the ... (Read 56 times)

123654777

  • Hero Member
  • *****
  • Posts: 585
on: Jun 30, 2018
The amount of money that people wish to hold to use in transactions varies directly with
 
  A) the income tax rate. B) their planned near-term purchases.
  C) the money supply. D) the interest rate.

Question 2

What is the loanable funds market? What happens if the real interest rate in the market is held above the equilibrium interest rate?
 
  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

hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

The loanable funds market is the market where borrowers obtain funds from savers.
In such a market, if the real interest rate is held above the equilibrium interest rate, the quantity of credit supplied will exceed the quantity of credit demanded. This will create a downward pressure on the real interest rate.


123654777

  • Member
  • Posts: 585
Reply 2 on: Jun 30, 2018
:D TYSM

fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Paths taken by honeyguides leading people to bees' nests Paths taken by honeyguides leading people to bees' nests
Pupil Assessment, Move Penlight directly in Front of Pupil Pupil Assessment, Move Penlight directly in Front of Pupil
Drake - Hold On Were Going Home Drake - Hold On Were Going Home
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Both the top and bottom pattern have the same frequency. However, the amount of on-time varies. Both the top and bottom pattern have the same frequency. However, the amount of on-time varies.
Check heat source for temperature. Evaluate the amount of heat given off from the source using your ... Check heat source for temperature. Evaluate the amount of heat given off from the source using your ...
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library