Business, 11.03.2020 05:28 sjjsksksj1590
Consider the U. S. market for loanable funds in a closed-economy model. Answer the following questions about each scenario.
a. The government starts offering a national savings bond to increase private savings, which pays a higher return than many other options available on the market.
This will shift the (supply of loanable funds to the right, demand for loanable funds to the right, supply of loanable funds to the left, demand for loanable funds to the left) , the interest rate and equilibrium amount of borrowing will (both increase, both decrease, decrease and increase respectively, increase and decrease respectively). .
b. Suppose the economy is now open. Due to rapid economic expansion in China, the Chinese government decides to buy U. S. Treasury notes with some of its surplus.
This will shift the (supply of loanable funds to the left, demand for loanable funds to the left, supply of loanable funds to the right, demand for loanable funds to the right) , the interest rate and equilibrium amount of borrowing will (decrease and increase respectively, both decrease, increase and decrease respectively, both increase) .
c. A new computer software program is introduced into the market, which offers businesses that purchase it promising returns on their investment.
This will shift the (supply of loanable funds to the right, supply of loanable funds to the left, demand for loanable funds to the right, demand for loanable funds to the left) , the interest rate and equilibrium amount of borrowing will (both decrease, both increase, decrease and increase respectively, increase and decrease respectively) .
d. The government increases the capital gains tax, which taxes earnings on assets in the stock market.
This will shift the (supply of loanable funds to the left, supplyof loanable funds to the right, demand for loanable funds to the left, demand for loanable funds to the right) , the interest rate and equilibrium amount of borrowing will (increase and decrease respectively, decrease and increase respectively, both decrease, both increase) .
Answers: 3
Business, 21.06.2019 22:20
If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false
Answers: 2
Business, 22.06.2019 08:30
Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price
Answers: 1
Business, 22.06.2019 09:50
Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing
Answers: 1
Business, 22.06.2019 11:00
If the guide wprds on the page are "crochet " and "crossbones", which words would not be on the page. criticize, crocodile,croquet,crouch,crocus.
Answers: 1
Consider the U. S. market for loanable funds in a closed-economy model. Answer the following questio...
History, 06.05.2020 07:24
Mathematics, 06.05.2020 07:24
Mathematics, 06.05.2020 07:24
Mathematics, 06.05.2020 07:24
History, 06.05.2020 07:24
History, 06.05.2020 07:24
English, 06.05.2020 07:24
World Languages, 06.05.2020 07:24
Mathematics, 06.05.2020 07:24