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A: (B)
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- Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (d) People’s values change, and they start to save more of their income.If the following policies were implemented, how would it affect the market for loanablefunds, 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.Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (b) The government starts a program that makes it easier for new homeowners to takeout a mortgage.
- Expecting an improving economy will generally cause an increase in investment that shifts the _____ curve for loanable funds to the _____. a. supply; left b. supply; right c. demand; left d. demand; rightNeed help with econ question! Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (a) The government increases its debt, thus crowding out the loanable funds market.Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (c) Technological improvements increase the profitability of investments for firms.
- Economists who forecast a future of secular stagnation believe that the ▼ demand supply for loanable funds may be low in coming years because A. the price of capital, particularly information technology goods such as computers, has been falling relative to the prices of other goods. B. rising population growth in the United States will increase the demand for housing. C. modern information technology firms require much more capital than older industrial firms. D. firms must meet their needs for capital with higher levels of expenditure.Using the market for loanable fund diagram, show graphically how it affects interest rate and investment in each of the following cases. a) G > T. b) A book titled ‘Live for Tomorrow’ convinces people to spend less. c) Tax on interest income rises. please answer step by step.Answer must be correct.Show all calculation. please Don,t copy from anywhere.Need help with Econ question ASAP! Using a supply and demand diagram, explain the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (b) The government starts a program that makes it easier for new homeowners to takeout a mortgage.
- In an unhindered free market, the supply and demand for loanable funds and, hence, the going rate of interest are driven by: The amount of money printed by the U.S. Treasury Time preferences of market participants Animal spirits The amount of deposits in the Federal ReserveA decrease in the level of business opportunity will generally _____ the loanable funds demand curve. A. not change B. right-shift C. cause a movement along D. left-shiftConsider the following policy scenarios and for each scenario diagrammatize and fully explain using analysis for the market for loanable funds how the following government policies affect the economy’s saving and investment. (a) Scenario Policy 1: Suppose the government starts with a balanced budget and then, because of a tax cut or spending increase, starts running a budget deficit. (b) Scenario Policy 2: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement savings plans (RRSPs).
