Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to Table 23.3.2. The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced.

Refer to Table 23.3.2. The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1 trillion at each real interest rate and the quantity of loanable funds supplied increases by $2 trillion at each real interest rate. If the government wants investment to be $9 trillion, it must ________ its budget balance by ________ trillion.

A) increase; $1

B) decrease; $1

C) increase; $1.5

D) decrease; $1.5

E) increase; $2

Answer:A

Diff: 2Type: MC

Topic:Government in the Market for Loanable Funds

Source:MyEconLab

why A?

image text in transcribed
Refer to the table below to answer the following question. Table 23.3.2 Loanable funds Loanable funds Real demanded supplied interest rate (trillions of 2002 (trillions of 2002 (percent per year) dollars) dollars) 8.5 5.5 8.0 6.0 7.5 6.5 7.0 7.0 6.5 7.5 6.0 8.0 10 5.5 8.5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles Applications And Tools

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

7th Edition

978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234

More Books

Students also viewed these Economics questions

Question

How will confidential or proprietary materials be protected?

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago