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Author Question: Consider the flow of investment and saving in a small economy. Suppose the equilibrium interest rate ... (Read 66 times)

cyc028

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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
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Marked as best answer by cyc028 on Oct 12, 2022

labrinker

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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.
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cyc028

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

cassie_ragen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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