Applied to the loanable funds market, the Law of Supply dictates that.. A)Lenders will seek to offer more loans to potential borrowers at higher interest rates than lower ones B)Lenders will seek to offer more loans to potential borrowers at lower interest rates than higher ones C)Borrowers will seek to acquire more loans at higher interest rates than lower interest rates.

Applied to the loanable funds market, the Law of Supply dictates that.. A)Lenders will seek to offer more loans to potential borrowers at higher interest rates than lower ones B)Lenders will seek to offer more loans to potential borrowers at lower interest rates than higher ones C)Borrowers will seek to acquire more loans at higher interest rates than lower interest rates.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter29: Interest, Rent, And Profit

Section: Chapter Questions

Problem 4QP

See similar textbooks

Similar questions

Consider a loanable funds market of Pakistan. Suppose, if government want to implement the policy to provide incentives on savings by allowing people to shield their savings by opening Retirement Accounts with commercial banks. What is the effect of this policy on the market for loanable finds Interest rate will (Please write one word either increase or decrease in the blank). Quantity of loanable funds will (Please write one word either increase or decrease in the blank) Now assume, the parliament passed a tax reform aimed at making investment more attractive—for instance, by instituting an investment tax credit. An investment tax credit gives a tax advantage to any firm building a new factory or buying a new piece of equipment What is the effect of this policy on the market for loanable finds Interest rate will (Please write one word either increase or decrease in the blank). Quantity of loanable funds will (Please write one word either increase or decrease in the blank)
Consider a loanable funds market of Pakistan. Suppose, if government want to implement the policy to provide incentives on savings by allowing people to shield their savings by opening Retirement Accounts with commercial banks. What is the effect of this policy on the market for loanable finds Interest rate will (Please write one word either increase or decrease in the blank). Quantity of loanable funds will (Please write one word either increase or decrease in the blank) Now assume, the parliament passed a tax reform aimed at making investment more attractive—for instance, by instituting an investment tax credit. An investment tax credit gives a tax advantage to any firm building a new factory or buying a new piece of equipment What is the effect of this policy on the market for loanable finds Interest rate will (Please write one word either increase or decrease in the blank). Quantity of loanable funds will 8(Please write one word either increase or decrease in the blank)
In the United States economy, there is a great deal of focus on technological advancements. These advances are said to increase worker productivity (like Zoom) or increase the productivity of capital (such as technology that makes the supply chain more efficient).What effect does advancement in technology have on the equilibrium real rental price and capital, assuming that the supply of capital is fixed? Explain, using the terms in the production function, how you know this to be true.
Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the future. Please answer the question by drawing the appropriate supply-and-demand diagram.
Answer in reference to managerial accounting. 1. Which of the accompanying assertion is valid. A) Elasticity of interest is constant all through the interest bend. B)Elasticity of interest increments as one goes down the interest bend. C)Elasticity of interest finishes as one goes down the interest bend. D)The slant of interest bend rises to its flexibility 2. When the pay versatility of interest for a decent is negative ,the acceptable is. A)normal great B)luxury great C)inferior great D)giffen great 3.For correlative its, the cross versality of interest will be. A)zero B) infinity C)Negative D)positive ,yet not as much as endless. 4.Which of coming up next isn't accurate. A)The law of interest says ,ceteria paribus , the lower the cost of a decent ,the more noteworthy the amount requested. B)The law of supply says ,ceteris paribus,the higher the cost of a decent ,the more noteworthy the amount provided. C)The supply bend for an exceptional short lived great is level. D)The request…
It is a well-known fact that high-interest rates make loans more expensive. When interest rates are high, fewer people and businesses can afford to borrow. That lowers the amount of credit available to fund purchases, slowing consumer demand. At the same time, it encourages more people to save because they receive more on their savings rate. High-interest rates also reduce the capital available to expand businesses, strangling supply. This reduction in liquidity slows the economy and results in decrease in GDP. It is understood that the low-interest rates stimulate all types of real investments and thus economic growth. However, savings rates fall, when savers find they get less interest on their deposits, and thus they might decide to spend more. They might also put their money into slightly riskier but more profitable investments, which drives up stock prices. Based on this, it can be claimed that (especially high) interest rates are detrimental to economic growth as well as income…
When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________. the quantity demanded of financial capital at any given interest rate will remain unchanged. the quantity demanded of financial capital at any given interest rate will shift to the left. the quantity demanded of financial capital at any given interest rate will shift to the right. the quantity demanded of financial capital at any given interest rate will achieve equilibrium.
Define the form of market that is invisible to the main commodity, such that it is not weighted or measured?
You are to answer the below questions in the context of the home housing market in Australia. Q1) Research and briefly describe the trend of the home housing market in Australia over the past 30 years in no more than 100 words (Hint: Describe the pattern in this trend). Q2) You are to answer the below sub-questions on how each event would affect the home housing market in Australia using key economic concepts, principles and theories taught. Treating each sub-question as a separate event and draw separate diagram for each separate event, explain and illustrate how each event ceteris paribus will affect the supply curve, demand curve, equilibrium house prices and quantity in the home housing market in Australia: i) Cost of renting becomes expensive and more people found buying a house to be a cost-effective option. ii) With consecutive increases in mortgage interest rates, more and more borrowers are selling their houses as they find it difficult to meet their mortgage repayments. iii)…
An increase in the money stock has no effect on equilibrium income whenever the a. IS curve is horizontal. b. LM curve is vertical. c. IS curve is vertical. d. LM curve is horizontal.
Use the linear demand and supply curves shown below to answer the following questions.You must show all calculations step-by-step or no credit will be given. At the market price in part a, the net gain to consumers when 10,000 units are purchased is $__________. At the market price in part a, the net gain to producers when they supply 10,000 units is $__________
Suppose Eleanor is a sports fan and buys only baseball caps. Eleanor deposits $3,000 in a bank account that pays an annual nominal interest rate of 15%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $15.00. Initially, the purchasing power of Eleanor's $3,000 deposit is baseball caps.