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- A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?1) Using a graph representing the market for loanable funds, show and explain what happens to interest rates and investment if: a reduction in military spending moves the government’s budget from deficit into surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.First Call, Inc. is a smartphone company. First Call expects its profits to double next year. Explain how this increase in expected profit influence First Call's demand for loanable funds.
- 1. Assume a pandemic hits a nation hard. As a result, firms are less confident about the economy. The most likely result would be a. a higher demand for loanable funds. b. a higher supply of loanable funds. c. an increase in equilibrium interest rates. d. a lower demand for loanable funds. e. higher productivity of capital.1. What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why this change happensOnly typed answer When the government funds spending projects by borrowing money (issuing government bonds), demand in the loanable funds market will _______ and interest rates generally ______. A: Increase; rise. B: Decrease; fall. C: Decrease; rise. D: Increase; fall. Please provide an explanation as well. Thank you!
- Lista the factors that affect the supply side of the loanable funds market. which factors shifts the curve?c. If the Federal Reserve sells government bonds, show what will happen to this graph. Explain the effects on interest rates and the quantity of loanable funds1. If the following policies were implemented, how would it affect the market for loanable funds, interest rates, investment and economic growth. Explain by using diagrams.a) A change in tax code that might increase private saving. b) Increase in government spending and also budget deficits.
- Q)Consider the market for loanable funds. If economic conditions are expected to become better, then the demand for loanable funds will _____ and the supply of loanable funds will _____. decrease; not change decrease; decrease not change; increase increase; decreaseIf and when the demand of loanable funds shifts to the left: Group of answer choices 1. This is good news for people who rely on the interest earnings from their savings but bad news for people who have outstanding home loans. 2. This is bad news for people who rely on the interest earnings from their savings but good news for people who have outstanding home loans. 3. This is good news both for people who rely on the interest earnings from their savings as well as those who have outstanding home loans. 4. This is bad news both for people who rely on the interest earnings from their savings as well as those who have outstanding home loans.