(Percent)217109800SupplyDemand100 200 300 400 500 600 700 800.LOANABLE FUNDS (Billions of dollars)900 1000is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds suppliedthan the quantity of loansSuppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is,demanded, resulting in aof loanable funds. This would encourage lenders tothe interest rates they charge, therebythe quantity of loanable funds supplied and,the quantity of loanable funds demanded, moving the market towardthe equilibrium interest rate of%

Savings is the source of the supply of loanable funds. As the interest rate falls, the quantity of…

Answered: (Percent) 2 1 7 10 9 8 0 0 Supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 19 8 Real interest rate (percent per year) a 10 A 2 0 150 300 450 600 750 900 Loanable funds (billions of 2012 dollars) less than $450 billion. In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be between $450 billion and $600 billion. DLF greater than $600 billion. $450 billion. 2 pts
J Assume that at the beginning of the year, you purchase an investment for $14,200 that pays $95 annual income. Also assume the investment's value has increased to $15,800 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return b. Is the rate of return a positive or a negative number? O Positive O Negative
The Atlantic Investment Tax Credit is a 10% tax credit available to businesses that make specific investments in the Atlantic region and the Gaspe Peninsula. The graph shows the market for loanable funds. Show the impact of this tax credit by moving the proper curve appropriately in the graph. The new equilibrium interest rate is The quantity of loanable funds is $ ક billion Which statement accurately describes the impact of the Atlantic Investment Tax Credit? Interest rate (%) 10 9 8 7 6 5 st 3 2 1 0 0 5 10 15 20 25 30 35 Quantity of loanable funds (in billions) 40 Supply Demand 45 50
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?
Figure: Supply of Loanable Funds) Use Figure: Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the: Interest -ate (%) 12 10 8 6 4 2 S 0 10 20 30 40 50 60 70 80 90 Loanable funds (billions of dollars) O quantity of loanable funds supplied falls by $20 billion. supply of loanable funds falls by $10 billion... quantity of loanable funds supplied rises by $20 billion. O supply of loanable funds rises by $20 billion.
Find the Income when the consumption is $13240 million and the savings are $ 9991 million
Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.80% at a time when inflation is around 1.95%. For the average saver, the real rate of interest on his or her savings is ___%.
Hide Assignment Information Instructions The table below is broken down by Month, Real Interest Rate (%), Loanable Funds (trillions of $), Exogenous Change, Equilibria (increases, decreases, or no change. Use the data table to determine the equilibrium real interest rate after certain factors change: Month Real Interest Rate (%) Loanable Funds (trillions of $) Exogenous Change Equilibria (increases, decreases, or no change) January 3% 3 no change no change April 3% 4 increased fund supply ? July 4% 2 decreased fund supply ? December 3% 3 increased fund demand ?
What would be the value of consumption of Saving is $1300 and the income is $2250
QUESTION 9 Use the following diagram to answer this question The accompanying graph shows the market for loanable funds in equilibrium. Interest rate (%) 12 10 8 6 4 0 XH 2 3 E 4 6 5 Quantity of loanable funds (trillions of dollars) S Which of the following might produce a new equilibrium interest rate of 2% and a new equilibrium quantity of loanable funds of $5 trillion? OA. Firms become pessimistic about the future and, as a result, they cut back on their plans to buy new equipment and build new factories. ⒸB. Congress decreases the tax rate on interest income. C. Capital inflows from foreign citizens are declining. D. The U.S. government offers a tax credit for firms that built new factories in the U.S.
Define disposable income
2. The supply of saving Suppose that Maria receives a pay raise of $1,050 per year. She can either use the extra money to consume goods and services, or she can save it by depositing it in a bank. For each of the alternative annual interest rates in the following table, indicate how much interest Maria would earn per year on her annual raise if she saves it. (Note: Assume that no income taxes are deducted.) Interest Rate Interest Earned (Dollars) (Dollars) (Percent) 8 20 A lower interest rate gives Maria incentive to save. The following graph shows a variety of possible curves representing the supply of saving.

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