Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppase that the following graph depicts the market for funds in the US credit market. The blue line, labeled D, represents the dernand for funds.
Suppase that the following graph depicts the market for funds in the US credit market. The blue line, labeled D, represents the dernand for funds. The supply curve labeled s1 represents the supply curve of funds from American sources, with no foreign funds in the market. The supply curve labeled s. represents the supply curve of funds from both American and foreign sources. Without influence from foreign sources of funds, the long-term equilibrium interest rate is W. With influence from foreign funds, the longterm equilibrium interest rate is Q6. The following graph depicts the market for business investments in the United States. The green line represents the relationship between the langterm interest rate and the arnount of business imvestments. Use the biack point (alus symbol) ta piot the point that represents the combination af business inwestment and lang-term interest rate that comes about when there is no influence from foreign funds. Then, use the grep point (star symbol) to piot the point that represents the combunation of business investment and hong-term interest rate when the influence from foreign fonds is accounted for. Suppase that the following graph depicts the market for funds in the US credit market. The blue line, labeled D, represents the dernand for funds. The supply curve labeled s1 represents the supply curve of funds from American sources, with no foreign funds in the market. The supply curve labeled s. represents the supply curve of funds from both American and foreign sources. Without influence from foreign sources of funds, the long-term equilibrium interest rate is W. With influence from foreign funds, the longterm equilibrium interest rate is Q6. The following graph depicts the market for business investments in the United States. The green line represents the relationship between the langterm interest rate and the arnount of business imvestments. Use the biack point (alus symbol) ta piot the point that represents the combination af business inwestment and lang-term interest rate that comes about when there is no influence from foreign funds. Then, use the grep point (star symbol) to piot the point that represents the combunation of business investment and hong-term interest rate when the influence from foreign fonds is accounted for
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started