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

Author Question: The amount of money that people wish to hold to use in transactions varies directly with A) the ... (Read 68 times)

123654777

  • Hero Member
  • *****
  • Posts: 585
on: Jun 30, 2018
The amount of money that people wish to hold to use in transactions varies directly with
 
  A) the income tax rate. B) their planned near-term purchases.
  C) the money supply. D) the interest rate.

Question 2

What is the loanable funds market? What happens if the real interest rate in the market is held above the equilibrium interest rate?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

The loanable funds market is the market where borrowers obtain funds from savers.
In such a market, if the real interest rate is held above the equilibrium interest rate, the quantity of credit supplied will exceed the quantity of credit demanded. This will create a downward pressure on the real interest rate.


123654777

  • Member
  • Posts: 585
Reply 2 on: Jun 30, 2018
:D TYSM

peter

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

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?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

More People Are Living in Cities More People Are Living in Cities
First-pass effect: (a) drugs are absorbed; (b) drugs enter hepatic portal circulation and go directl First-pass effect: (a) drugs are absorbed; (b) drugs enter hepatic portal circulation and go directl
In 2006 an Iraqi tribunal convicted Saddam Hussein of murdering his own people and sentenced him to In 2006 an Iraqi tribunal convicted Saddam Hussein of murdering his own people and sentenced him to
A greater number of men than women hold full-time jobs, but the gap is closing because of an ... A greater number of men than women hold full-time jobs, but the gap is closing because of an ...
A depiction of the amount of precipitin that would form with different ratios of antigen and ... A depiction of the amount of precipitin that would form with different ratios of antigen and ...
Stretch arm overhead. Stand to the side facing the same direction as the recipient. Hold onto the ... Stretch arm overhead. Stand to the side facing the same direction as the recipient. Hold onto the ...
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library