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

Author Question: What is the relationship between the real interest rate, the supply of loanable funds and the demand ... (Read 118 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
What is the relationship between the real interest rate, the supply of loanable funds and the demand for loanable funds?
 
  What will be an ideal response?

Question 2

Jeep Cherokees are a normal good. If people's incomes increase, the direct result will be
 
  A) an increase in the supply of the vehicles.
  B) a decrease in the demand for the vehicles.
  C) an increase in the demand for the vehicles.
  D) Both answers A and C are correct.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pallen55

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

The supply of loanable funds has a positive relationship between the real interest rate and the quantity of loanable funds supplied. In a figure, a supply of loanable funds curve has a positive slope. Similarly, the demand for loanable funds is the relationship between the real interest rate and the amount of loanable funds demanded. In a figure, a demand for loanable funds curve has a negative slope.

Answer to Question 2

C


vicotolentino

  • Hero Member
  • *****
  • Posts: 552
Reply #2 on: Jun 29, 2018
Thank you :)


pallen55

  • Sr. Member
  • ****
  • Posts: 331
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Model of the GABA Receptor–Chloride Channel Molecules in Relationship to Antiseizure Pharmacotherapy Model of the GABA Receptor–Chloride Channel Molecules in Relationship to Antiseizure Pharmacotherapy
Age-Crime Relationship in (a) 1842 and (b) 1992 Age-Crime Relationship in (a) 1842 and (b) 1992
When teenagers live in single-parent homes, a good relationship with grandparents is related to ... When teenagers live in single-parent homes, a good relationship with grandparents is related to ...
The growth in demand for energy use is met by burning fossil fuels The growth in demand for energy use is met by burning fossil fuels
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Video: What are Taste Receptors? How Does it Work? Animation

For a complete list of videos, visit our video library