In the Market for Loanable Funds, what was the result of "crowding out"? Lower interest rates, higher quantity of loanable funds available. O Higher interest rates, lower quantity of loanable funds available. O Higher interest rates, higher quantity of loanable funds available. O Lower interest rates, lower quantity of loanable funds available.

In the Market for Loanable Funds, what was the result of "crowding out"? Lower interest rates, higher quantity of loanable funds available. O Higher interest rates, lower quantity of loanable funds available. O Higher interest rates, higher quantity of loanable funds available. O Lower interest rates, lower quantity of loanable funds available.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 6P

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If there is a surplus of loanable funds, then 1) the quantity demanded is greater than the quantity supplied and the interest rate will rise. 2) the quantity demanded is greater than the quantity supplied and the interest rate will fal. O 3) the quantity supplied is greater than the quantity demanded and the interest rate will rise. 4) the quantity supplied is greater than the quantity demanded and the interest rate will fall.
Suppose the market for loanable funds is currently in equilibrium. Which of the following factors will cause an increase in the interest rate? Select one: O a. An increase in the household saving rate O b. An expansionary monetary policy Oc. An increase in business confidence O d. A decrease in government budget deficits Travis buys a 20-year, $10,000 US Treasury bond with a coupon rate of 5%. After three years, he has some unexpected expenses and decides to sell the bond. In which market will Travis sell his bond? Select one: O a. The secondary bond market O b. The primary bond market O c. The Treasury bond market Od. The T-bond market
a. The supply of loanable funds slopes upward because O higher interest rates make it more costly to borrow. O savers will make more funds available at lower interest rates. O investors will want more money made available at higher interest rates. savers will make more funds available at higher interest rates. b. The demand for loanable funds slopes downward because O few investment projects yield a high rate of return. O many investment projects yield an equal.rate of return. O many investment projects yield a high rate of return. O few investment projects yield a low rate of return.
a. The supply of loanable funds slopes upward because O higher interest rates make it more costly to borrow. savers will make more funds available at lower interest rates. O investors will want more money made available at higher interest rates. savers will make more funds available at higher interest rates. b. The demand for loanable funds slopes downward because few investment projects yield a high rate of return. many investment projects yield an equal rate of return. many investment projects yield a high rate of return. O few investment projects yield a low rate of return. c. The equilibrium interest rate is determined where the interest rate is equal to O the amount of loanable funds. O the expected rate of return. O the expected rate of spending. O expected personal income.
Interest 6% lonable fund is 4trillion. Suppose there was a change in the tax laws to encourage savers to save more and as a result, assume the equilibrium interest rate falls by 2 % point. By how much the equilibrium loanable funds saved and invested would rise or fall?
Sssistkace with the following question please show all working in steps so I can follow. Appreciate the help. Now suppose the G rises by 1,000. Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r ————————————————- a. Compute private saving, public saving, and national saving. b.Calculate the equilibrium interest rate.
Three students have each saved $1,000.each has an investment opportunity in which he or she can invest upto $2,000.Here are the rates of return on the students investment project:a.If borrowing and lendind are prohibited,so each student uses only personal saving to finance his or her own investment project ,how much will each student have a year later when the project pays its return?b.Now suppose their school opens up a market for loanable funds in which students ran borrow and lend among themselves at an interest rate r.What would determine whether a student would choose to be a borrower or lender in this market?c.Among these three students,what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent?At 10percent?d.At what interest rate would the loanable funds market among these three students be in equilibrium?At this interest rate,which student(s) would borrow and which student(s) would lend?e.At the equilibrium interest rate,how…
If and when the demand of loanable funds shifts to the left: Group of answer choices 1. This is good news for people who rely on the interest earnings from their savings but bad news for people who have outstanding home loans. 2. This is bad news for people who rely on the interest earnings from their savings but good news for people who have outstanding home loans. 3. This is good news both for people who rely on the interest earnings from their savings as well as those who have outstanding home loans. 4. This is bad news both for people who rely on the interest earnings from their savings as well as those who have outstanding home loans.
Q: Draw a graph depicting the market for loanable funds and analyze the impact of open market operations when the interest rate is at or near the zero lower bound. a. Illustrate the supply and dem and for loanable funds, labeling the supply curve (S), the demand curve (D), and the initial equilibrium interest rate and quantity of loanable funds. b. Show the effect of open market operations on the supply of loanable funds, and analyze its impact on the price of loanable funds.c. Introduce a situation in which the market for loanable funds faces the zero lower bound (it may be easiest to draw a new graph for this for the purpose of clarity). d. Explain how open market operations typically influence the supply of loanable funds and interest rates in normal circumstances. e. Discuss why these operations become less effective when the interest rate is at or near the zero lower bound.
AutoSave OFF A B C 6 B - Home Insert Draw Design 2 Paste ď CA Page 1 of 1 Layout References A A Aa Calibri (Bo... 11 BỊ Ụ và X, xan Change in NAR: . -20% 0% +30% Y 152 words Ao Mailings Review View English (United States) VE E Tell me ¶ Item Capital investment Annual revenues Annual expenses Salvage value HW11 AalbCcDdE Normal Acme Prototype, Inc. is considering the purchase of a metal 3D printer. MARR is 12% per year and the useful life is 5 years. Using annual worth (AW) analysis, which alternative has higher sensitivity to the Net Annual Revenue (NAR) as shown below? (Note: NAR = Annual Revenues - Annual Expenses). AalbCcDdEe No Spacing Show the computation of the AWs for each NAR, provide a summary table comparing the AWs of each alternative for each change in NAR, and provide an Excel plot showing the sensitivity of the two alternatives for the three changes in NAR. Paste the Excel chart and provide an interpretation. Aa Bb CcDc AaBb CcDd Fr AaBb AabCcDctc Heading 1 Hascing 2…
Suppose the government of Australia incurs a budget deficit of $50 billion due to increased government spending in 2020 as result of Covid 19. Because of this, the government borrowing in 2021 increases by the same amount. a. Show this development using a graph representing the market for loanable funds for Australia. Explain in writing and using a graph the effect of this on interest rates. b. Compare the size of equilibrium changes in 1) investment, 2) public saving, 3) private saving and 4) national saving (public saving + private saving) with $50 billion increase in borrowing. Compare the changes (increase/decrease) in these variables indicating same, less or more than the $50 billion. c. Will the equilibrium quantity of national savings change by more or less than the initial change in public saving? Explain your answer (in 50 words…
Who benefits from an increase in interest rates? O people who are borrowing money no one O people who are saving money O everyone Previous Next ASUS f6 19 & 5 8 近