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

Author Question: Suppose households decide to reduce savings because they want to enjoy more present time than future ... (Read 30 times)

KWilfred

  • Hero Member
  • *****
  • Posts: 570
on: Jul 1, 2018
Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
 
  A) interest rate goes down, and quantity of borrowed funds increases.
  B) interest rate goes down, and quantity of borrowed funds decreases.
  C) interest rate goes up, and quantity of borrowed funds decreases.
  D) interest rate goes up, and quantity of borrowed funds increases.

Question 2

How does a decrease in government budget deficits affect the equilibrium interest rate in the loanable funds model?
 
  A) Interest rate increases.
  B) Interest rate decreases.
  C) Interest rate stays the same.
  D) Interest rate first increases and then decreases back to the original level.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cascooper22

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


KWilfred

  • Hero Member
  • *****
  • Posts: 570
Reply #2 on: Jul 1, 2018
Thank you :)


cascooper22

  • Sr. Member
  • ****
  • Posts: 312
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Meal Time Meal Time
Time Time
Sterilization Time Requirements Cont Sterilization Time Requirements Cont
An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ... An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ...
Greet a First-Time Client With a Firm Handshake. Greet a First-Time Client With a Firm Handshake.
Anatomy of the Large Intestine By the time chyme reaches the large intestine, most of its nutrients Anatomy of the Large Intestine By the time chyme reaches the large intestine, most of its nutrients
Video: Splitting of Sugar, Oxidation/ Reduction & ATP Generation

For a complete list of videos, visit our video library