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 111 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?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Relationship between winter rainfall and chuckwalla, Sauromalus, size Relationship between winter rainfall and chuckwalla, Sauromalus, size
dinosaurs were real dinosaurs were real
Total Fertility Rate in Japan: Actual versus Forecast Total Fertility Rate in Japan: Actual versus Forecast
Fertility, Mortality, and the Net Rate of Reproduction in Sweden Fertility, Mortality, and the Net Rate of Reproduction in Sweden
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ... Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ...
Video: Carbon fixing adaptations Animation

For a complete list of videos, visit our video library