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 95 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
YES! Correct, THANKS for helping me on my review

cassie_ragen

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Solar Energy Input Varies with Latitude Solar Energy Input Varies with Latitude
Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1 Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1
The bimetallic temperature sensor spring controls the amount of silicone that is allowed into the ... The bimetallic temperature sensor spring controls the amount of silicone that is allowed into the ...
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 ...
Control you knife with one hand and hold the item being cut with the other (2 of 3) Control you knife with one hand and hold the item being cut with the other (2 of 3)
Flowering plants such as papayas hold on to their spores and disperse by releasing seeds enclosed in Flowering plants such as papayas hold on to their spores and disperse by releasing seeds enclosed in
Video: Glycolysis Animation

For a complete list of videos, visit our video library