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 39 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

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

How lenses correct visual problems: (A) emmetropia; (B) myopia; (C) hyperopia; (D) corrected myopia; ... How lenses correct visual problems: (A) emmetropia; (B) myopia; (C) hyperopia; (D) corrected myopia; ...
Apply scissoring between metatarsals and figure-8s on toe joints to mobilize the foot. Apply scissoring between metatarsals and figure-8s on toe joints to mobilize the foot.
How to choose the correct u and dv when you integrate by parts How to choose the correct u and dv when you integrate by parts
If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance? If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance?
If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance? If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance?
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Phases of mitosis

For a complete list of videos, visit our video library