22 The table shows an economys demand for and supply of loanable funds schedules. The governments budget

Question:

22 The table shows an economy’s demand for and supply of loanable funds schedules. The government’s budget is balanced.

image text in transcribed

a Calculate the equilibrium real interest rate, investment and private saving.
b If planned saving increases by €100 billion at each real interest rate, explain the change in the real interest rate.

c If planned investment increases by €100 billion at each real interest rate, explain the change in saving and the real interest rate.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

See More Books

Question Posted: Nov 07, 2024 04:00 AM

See More Questions

Task O4. The unemployment rate in April 2020 was 14.7%, while in March 2020 was 4.4%. What is your best estimate for the real output growth rate in this period? Assume the US real output was growing...
7 The table shows an economys demand for and supply of loanable funds schedules. The governments budget is balanced. a Calculate the equilibrium real interest rate, investment and private saving. b...
Final_Exam_Macro Question 1 (2 points) Purchasing-power panty theory does not hold at all times because many goods are not easily transported and the same goods produced in different countries may be...
How can adults continue to function relatively normally after surgery to remove the thymus, tonsils, spleen, or lymph nodes?
Why is auditing so important in a financial MIS? Give an example of an audit that failed to disclose the true nature of the financial position of a firm. What was the result?
Estimate the effective radius of a glycine molecule in water at 25C given that its diffusion coefficient is 1.055 X 10-9 m2 S-1 and that the viscosity of water is 1.00 cP.
22 The table shows an economys demand for and supply of loanable funds schedules. The governments budget is balanced. a Calculate the equilibrium real interest rate, investment and private saving. b...
The balance sheet of Franklin Foods, at December 31, 2011, reported 110,000 shares of no-par common stock authorized, with 30,000 shares issued and a Common stock balance of $180,000. Retained...
In the context of data collection, what makes unobtrusive research forgiving? a. It requires the correction of fewer mistakes. b. Correcting mistakes in data collection is relatively easier. c....
21 In 2017, suppose that the stock market crashes and the default risk increases. Explain how this increase in default risk influences the Lee familys supply of loanable funds curve. In 2016, the Lee...
23 If the Indian government reduces its deficit and returns to a balanced budget, how will the demand or supply of loanable funds in India change? Indias Economy Hits the Wall At the start of 2008,...
Find an equation for (a) The vertical line and (b) The horizontal line through the given point. (0, -2)
KBC Decorating Co. will now begin to use special journals: Sales Journal, Purchase Journal, Cash Receipts Journal,and Cash Payments Journal. The company also has ledger accounts for its regular...
Compute profits for the five sample products under ABC. a. First, use the current production volume and number of orders and SKUs from Exhibit 4 to calculate total ABC profits for each product. b....
Better Late than Never "Boy, this is all so confusing," said Jason as he stared at the papers on his desk. " If only I had taken the advice of my finance instructor, I would not be in such a...
8. David sent goods costing ,5,50,000 on consignment basis to Devi on 1-1-2020 @ 7% commission. ,75,000 was spent on transportation by David. Devi spent ,45,000 on unloading. Devi sold 85% of the...
Compton and Lula are successful stockbrokers working with the Market Beat Brokerage firm. Before buying a company's stock, Compton reviews the company's reports and past data. Lula, on the other...
Sally Johnson loaned a friend $10,000 at 15% interest, compounded annually. She is to repay the loan .in five equal end-of-year payments. Sally estimates the inflation rate during this period is 12%....
Write each fraction as a percent. 7 50

22 The table shows an economys demand for and supply of loanable funds schedules. The governments budget

Question:

Real interest rate Loanable Loanable funds funds demanded supplied (per cent per year) (billions of 2010 euros) 2 650 450 3 600 500 4 550 550 5 500 600 678 450 650 400 700 350 750

Step by Step Answer:

Economics

Students also viewed these Business questions