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 91 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?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Relationship between levels of COHb in blood and concentration of CO in the surrounding air Relationship between levels of COHb in blood and concentration of CO in the surrounding air
Dose–response relationship Dose–response relationship
Attachment is a close emotional relationship. Attachment is a close emotional relationship.
A relationship between folate and B12 metabolism A relationship between folate and B12 metabolism
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
Please help me with a Real Estate Course Problem Please help me with a Real Estate Course Problem
Video: Inflammatory response Animation

For a complete list of videos, visit our video library