Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping? Explain

Question:

Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping? Explain the equilibrium interest rate. List some factors that might cause it to change.

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

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

See More Books

Question Posted: May 23, 2013 07:48 AM

See More Questions

Why is the supply of loanable funds upward sloping? Why is the demand for loanable funds downward sloping?
Explain why the supply of loanable funds curve slopes upward to the right.
List some factors that have fueled globalization.
Acculturation is an extremely important topic in this age of globalization and multiculturalism; however, it remains an especially difficult topic to study. Peoples acculturation experiences vary...
In FFT, we define the range for log of strikes as km=+(m1)k=+(m1), form = 1, . . . ,N and some . There are many choices for . One of which is to set = ln S0 N 2 . This choice for would cause...
Company founder Ricardo has recently sold his company to a major technology company for $500 million. With all his new power, Ricardo abuses people, misuses company funds, and cares little about...
What is the main difference between a bond and a share of stock? AppendixLO1
Mystic Inc. uses a job order costing system and applies overhead to jobs at a predetermined rate of $4.25 per direct labor dollar. During April 2010, the company spent $29,600 on direct material and...
Ch. 4 104 Problem 8 distribution business. The following is Jordana's income Jordana is self-employed in the T-shirt statement, for the calendar year ending De car ending December 31. dono Statement...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to...
If money is not an economic resource, why is interest paid and received for its use? What considerations account for the fact that interest rates differ greatly on various types of loans? Use those...
Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now? How much of the future value is total interest? By how much would total interest be greater at a 6...
The transistors in the circuit in Figure 3.36 in the text have parameters $V_{T N}=0.6 \mathrm{~V}, k_{n}^{\prime}=120 \mu \mathrm{A} / \mathrm{V}^{2}$, and $\lambda=0$. The width-to-length ratio...
Write out the form of the partial fraction decomposition of the function (See Example). Do not determine the numerical values of the coefficients. (If the partial fraction decomposition does not...
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing$16,000 2. Wages of assembly workers$83,000 3. Property taxes on...
The diagram shows the instant when a long slender bar of mass 4.8 kg and length 2.9 m is horizontal. At this instant the mass m= 6.2 kg has a vertical velocity of 5.3 m/s. If the pulley has...
Holland has been down to the Law Clinic and has returned with several new cases/clients; Wanda and the doorman from the 7-Seas Bar/Grill,Wanda, who has been charged with malicious destruction of a...
2) A spring of constant k=1.2 N/cm is being compressed 5-cm by a 200-gram ball. The ball is released on a 10 degree incline. Determine: a) The speed of the ball when it leaves the spring b) The...
(Multiple IRRs) You would like to open an investment company named Ripem. The cost of building up the company is $750,000. You offer your clients the following deal: For five annual deposits of...
Hotel Majestic is interested in estimating fixed and variable costs so that the company can make more accurate projections of costs and profit. The hotel is in a resort area that is particularly busy...
How different were the decades of the 1960s and the 1970s! Those were the days of shortages, waiting, queues, control, licenses and monopoly! Contrastingly, today we are spoilt for choice if we want...
Demand curves slope downward because, other things held equal, a. An increase in a products price lowers MU. b. A decrease in a products price lowers MU. c. A decrease in a products price raises MU...
True or false. The law of diminishing marginal utility predicts the consumption behavior of addicts quite well.
In what way is criminal behavior similar to consumer behavior? Why do most people obtain goods via legal behavior as opposed to illegal behavior? What are society's main options for reducing illegal...
nformation pertaining to Noskey Corporation s sales revenue follows: November 2 0 2 1 ( Actual ) December 2 0 2 1 ( Budgeted ) January 2 0 2 2 ( Budgeted ) Cash sales $ 1 0 5 , 0 0 0 $ 1 1 5 , 0 0 0...
The management team of Netflix maintains a stable dividend using the Lintner model: Dt+1 = Dt + EPS Target Payout Where Dt (Dt+1) = dividend in the current period t (the next period t + 1) EPSt =...
#1 #2 hapter 50 10 D Werences lav Help Required information [The following information applies to the questions displayed below) Archer Company is a wholesaler of custom-built air-conditioning units...

Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping? Explain

Question:

Step by Step Answer:

a The supply of loanable funds is upsloping because savers will make more funds available at high...View the full answer

Economics

Students also viewed these Economics questions