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 84 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?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

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.

The Geologic Time Scale The Geologic Time Scale
Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010 Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010
a) Using a soft pillow rather than a hard bolster under the knees will reduce pressure on the back ... a) Using a soft pillow rather than a hard bolster under the knees will reduce pressure on the back ...
Percentage of higher-income Canadian households Percentage of higher-income Canadian households
Jim Croce - Time in a bottle - 1973 Jim Croce - Time in a bottle - 1973
The Hfr chromosome time-of-entry map is assembled from the recombinant data The Hfr chromosome time-of-entry map is assembled from the recombinant data
Video: Functional zones in a mitochondrion

For a complete list of videos, visit our video library