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

Author Question: In the above figure, the demand for loanable funds curve is drawn for the average expected profit. ... (Read 77 times)

plus1

  • Hero Member
  • *****
  • Posts: 676
on: Jun 29, 2018
In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit rises, the amount of loanable funds demanded will be
 
  A) less than 450 billion.
  B) 450 billion.
  C) between 300 billion and 450 billion.
  D) greater than 450 billion.

Question 2

Suppose you cash in a Certificate of Deposit (a small time deposit) to acquire the traveler's checks you'll need for your vacation. What happens to M1 and M2?
 
  A) M1 and M2 both increase.
  B) M1 stays the same and M2 increases.
  C) M1 increases and M2 decreases.
  D) M1 increases and M2 stays the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joechoochoy

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

D


plus1

  • Member
  • Posts: 676
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Excellent

« 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?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

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?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

A sigmoid (cooperative) binding curve A sigmoid (cooperative) binding curve
Many ideologies stem from older theories. The ideas of the philosophers are simplified. Ideologies Many ideologies stem from older theories. The ideas of the philosophers are simplified. Ideologies
James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only James Madison was a key figure at the Constitutional Convention of 1787 in Philadelphia. He not only
Ebbinghaus’s forgetting curve Ebbinghaus’s forgetting curve
Re-creation of Pheidias’s Huge Gold and Ivory Figure of Athena Re-creation of Pheidias’s Huge Gold and Ivory Figure of Athena
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: Optic Nerve and Optic Disk Animation (Part 1 of 2)

For a complete list of videos, visit our video library