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

Author Question: Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate ... (Read 30 times)

cyc028

  • Full Member
  • ***
  • Posts: 151
on: Oct 12, 2022
Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate is 2.5% and the equilibrium level of saving and investment is $4 billion. Now suppose, all else remaining equal, that there is an increase in per capita income. What will be the effect in the capital market?
◦ The interest rate will fall below 2.5% and the quantity of investment demanded will increase.
◦ The interest rate will fall below 2.5% and the quantity of saving supplied will increase.
◦ The interest rate will rise above 2.5% and the quantity of investment demanded will decrease.
◦ There will be an indeterminate effect on the interest rate and an increase in the equilibrium level of investment and saving.
◦ The interest rate will rise above 2.5% and the quantity of saving supplied will increase.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cyc028 on Oct 12, 2022

labrinker

  • Full Member
  • ***
  • Posts: 162
Reply #1 on: Oct 12, 2022
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 35% of students answer this correctly


cyc028

  • Member
  • Posts: 151
Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review

JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

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?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Snout and mouth of sand tiger shark, showing protruding teeth and small eyes Snout and mouth of sand tiger shark, showing protruding teeth and small eyes
Tubal ligation. To minimize the size of the incisions necessary, laparoscopic surgery may be used to Tubal ligation. To minimize the size of the incisions necessary, laparoscopic surgery may be used to
Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
Nutrients Are Absorbed through the Small Intestine Nutrients Are Absorbed through the Small Intestine
Outgroup role in relative rate test Outgroup role in relative rate test
Genetic Drift in Large and Small Populations Genetic Drift in Large and Small Populations
Video: Acids and bases - definition

For a complete list of videos, visit our video library