« previous next »

Author Question: Ignoring the Ricardo-Barro effect, what impact does the government have in the loanable funds ... (Read 63 times)

justinmsk

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
Ignoring the Ricardo-Barro effect, what impact does the government have in the loanable funds market?
 
  What will be an ideal response?

Question 2

An objective analysis of what is in the economy is referred to as
 
  A) positive economics.
  B) normative economics.
  C) command economics.
  D) implicit economics.


vickybb89

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

The government has two effects in the market for loanable funds. First, if the government has a budget surplus, it adds to private saving and increases the supply of loanable funds. Second, if a government has a budget deficit, it increases the demand for loanable funds.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology 1 The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology 1
Alzheimer’s Drugs Work by Intensifying the Effect of Acetylcholine at the Receptor Alzheimer’s Drugs Work by Intensifying the Effect of Acetylcholine at the Receptor
Inverse Relation Between IQ and Disease. Could this explain the Flynn effect? Inverse Relation Between IQ and Disease. Could this explain the Flynn effect?
Thorndike’s Puzzle Box and the Law of Effect (1 of 2) Thorndike’s Puzzle Box and the Law of Effect (1 of 2)
Factors Affecting Saturation and Condensation: Effect of Curvature Factors Affecting Saturation and Condensation: Effect of Curvature
The impact of climate change is greater in some areas than in others The impact of climate change is greater in some areas than in others
Video: How eudicots (true dicots) differ from monocots Animation

For a complete list of videos, visit our video library