If a popular TV show on personal finance convincesAmericans to save more for retirement, the_________ curve for loanable funds would shift,driving the equilibrium interest rate _________.a. supply; upb. supply; downc. demand; upd. demand; down

If a popular TV show on personal finance convincesAmericans to save more for retirement, the_ curve for loanable funds would shift,driving the equilibrium interest rate _.a. supply; upb. supply; downc. demand; upd. demand; down

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 4CQQ

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Question

If a popular TV show on personal finance convinces
Americans to save more for retirement, the
_________ curve for loanable funds would shift,
driving the equilibrium interest rate _________.
a. supply; up
b. supply; down
c. demand; up
d. demand; down

Subfield of finance that deals with managing the money, investments, and financial planning of individuals based on earnings and future expected cash flows and requirements.

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Use the loanable funds market to illustrate the effect of the following events on the equilibrium. Illustrate the effects on the interest rate and quantity of investment-savings a) The proportion of retired people in the population goes up. Think that usually retired people generally save less than working people at any interest rate. b) At any given interest rate, consumers decide to save more (assume the budget balance is zero). c) At any given interest rate, businesses become very optimistic about the future profitability of investment spending (assume the budget balance is zero).
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