Author Question: If the real interest rate A) falls, there is a movement along the supply curve of loanable funds ... (Read 63 times)

rayancarla1 · **on:** Jun 29, 2018

If the real interest rate

A) falls, there is a movement along the supply curve of loanable funds to a lower quantity of loanable funds .
B) rises, the supply of loanable funds curve shifts leftward.
C) rises, the supply of loanable funds curve shifts rightward.
D) falls, there is a movement along the supply of loanable funds curve to a higher quantity of saving.
E) falls, the supply of loanable funds curve shifts leftward.

Question 2

The above table gives information for the nation of North Hampton. There are no imports to or exports from North Hampton.

a. Find aggregate planned expenditure for each level of real GDP.
b. What is the equilibrium level of real GDP?

elizabethrperez · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

a. To calculate aggregate expenditure, for each level of real GDP sum consumption expenditure plus investment plus government purchases. The above table has the answers for each level of real GDP.
b. Equilibrium real GDP is 800 billion because that is the level of real GDP that equals aggregate planned expenditure.