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Author Question: The demand for loanable funds curve shifts in response to changes in A) the amount of household ... (Read 63 times)

silviawilliams41

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on: Jun 29, 2018
The demand for loanable funds curve shifts in response to changes in
 
  A) the amount of household savings.
  B) the expected future disposable income.
  C) expected profits.
  D) the real interest rate.
  E) wealth.

Question 2

If the current account balance is 235 billion and U.S. official reserves increased by 35 billion, what is the official settlements account balance and the capital and financial account balance?
 
  What will be an ideal response?


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okolip

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The official settlements account equals the negative of the change in official reserves, so the official settlements account balance is -35 billion. Then, the sum of the current account balance plus the capital and financial account balance plus the official settlements account balance equals zero, which means that the capital and financial account balance must equal 200 billion.


silviawilliams41

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

tkempin

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Reply 3 on: Yesterday
:D TYSM

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