Question
Give the correct answer with detailed explanation and don't copy from internet . Economics 7. Fill in the blanks: Equilibrium in the loanable funds market
Give the correct answer with detailed explanation and don't copy from internet.
Economics
7. Fill in the blanks:
Equilibrium in the loanable funds market occurs at an equilibrium ______ ______ with an equilibrium quantity of loanable funds supplied and demanded. This equilibrium quantity of loanable funds equals equilibrium __________ and equilibrium _________.
8. A rightward shift in the demand curve for loanable funds: (a) Increases the equilibrium interest rate and increases the quantity of funds demanded
(b) Decreases the equilibrium interest rate and increases the quantity of funds demanded
(c) Decreases the equilibrium interest rate and decreases the quantity of funds demanded
(d) Increases the equilibrium interest rate and decreases the quantity of funds demanded.
9. Fill in the blanks:
_______ ________ increase the supply of loanable funds while ________ _________ increase the demand for loanable funds.
10. Which of the following describes the crowding out effect: (a) The government saves to finance its deficit, leaving less funds available for investment (b) The government borrows to finance its deficit, leaving more funds available for investment
(c) The government borrows to finance its deficit, leaving less funds available for investment
(d) The government saves to finance its deficit, leaving more funds available for investment
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