After reading the given descriptions, please place the correct label by the quadrant on the graph that best describes each person's position in the market for loanable funds.Jolien decides not to take out a loan to fund expanding her grocery store because she projects it will only earn a return of 4%4%.Osi closely follows the market for United States Treasury Bonds. He is willing to invest in them anytime the rate of return is 5%5% or higher, and sees that this is the case.In order to open a new car wash facility expected to return 13%13%, Julius secures a loan.John will shift his stock investments to corporate bonds when they return at least 10%10%. They do not, so he stays with stocks S8.0-Quantity of loanable funds (billions of dollars)Answer BankOsiJuliusJohnJolienInterest rate (%)

Person Jol demands loan in this case. The amount of loan demanded by her lies on the lower portion…

Answered: S 8.0- Quantity of loanable funds…

Business

Economics

S 8.0- Quantity of loanable funds (billions of dollars) Answer Bank Osi Julius John Jolien Interest rate (%)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

See similar textbooks

Related questions

Q: Assume a consumer has current-period income y=200, future-period income y'=150, current and future…

A: Given information Current income Y=200 Future income Y'=150 Current tax t=40 Future tax t'=50…

Q: The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves. Which…

A: Loanable Funds is defined as the sum total of the money owned by the people and entities in an…

Q: Consider the market for loanable funds.if expectations about South Africa's future economic…

A: Answer: If the expectation about South Africa's future economic performance is negative then the…

Q: In detail what are some of the factors that affect demand for loanable funds according to the…

A: Demand is the total quantity of goods and services in the market for which the consumer is willing…

Q: How would the price of the bond be affected by changing the going market interest rate? (Hint:…

A: Interest rate Interest rates are set by the interaction between the supply and demand for money in…

Q: Anthony Annorenc The following are correct descriptions about the key general characteristics of…

A: The market for loanable funds refers to the interaction of borrowers and lenders that determines the…

Q: If you bought one Bitcoin at a total cost of $50,000 at the beginning of year t and sold it by…

A: Buying price = $50000Selling price = $ 87500 real rate of return is the percentage of return on…

Q: Identify the impact on either the supply or demand of loanable funds following the events listed…

A: Loanable funds includes the all types of credits like bonds, loans, etc. the interaction of demand…

Q: If you borrowed P10000 from a bank with 18% interest per annum, what is the total amount to be…

A: Amount to be repaid = principle amount + interest payment

Q: Suppose that the government changes the tax code to allow additional amounts of money to be placed…

A: Change in tax code leads to increase in supply of loanable fund in the market, thus the supply curve…

Q: Describe the procedure that outlines the steps for determining the IRR for a mixed investment?

A: The internal rate of return (IRR) represents the interest rate that reduces the net present value…

Q: Please use excel and explain how you solved it step by step thank you What is the present value of…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: Suppose Crystal Wilson wants to accumulate $1,000,000 by the time she retires in 40 years. If she…

A: Given, FV = $1,000,000 Time = 40 years Rate of interest = 10%

Q: What is the value of the common stock of ABD Company if the dividend paid last year was $3.50, at a…

A: Stock: It refers to the security that shows represent the company's ownership. The more stock will…

Q: If the business community becomes more optimisticabout the profitability of capital, the…

A: Behavioral optimism refers to the positive attitude of gaining positive outcome from the investment…

Q: 2.0%? b) Given the selling price from part (a), what was your annual rate of return from owning this…

A: The annual rate of return is the percentage change in the value of an investment. For example: If…

Q: 1. Which of the following is NOT a factor in the computation of unlevered cash flows in the Real…

A: Discounted cash flow analysis or DCF attempts for figuring out the value of an asset or a company…

Q: Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount…

A: 1) Face value = $10,000 Fixed interest= $750. Interest rate= Fixed interest amount *100/ Face value

Q: Exercise 4 (Basic Net Present Value Analysis) On January 2, Pebbles Cruz paid P18,000 for 900…

A: Given: The cash outflow though Ms. Cruz is = P18,000 Shares value = 900 Life = 4 years The cash…

Q: Every country has different traditions and institutions regarding financing from private…

A: Small firms benefit greatly from private funding sources' more lenient lending criteria and prompt…

Q: What factors make up the total demand for loanable funds? The total supply of loanable funds. Please…

A: As economies emerged, goods and services were produced that required machinery and labour. With time…

Q: Rank the interest sensitivity of the following from most sensitive (to an interest rate change) to…

A: The sensitivity of interest rate is how much of an asset with fixed-income price asset tends to move…

Q: Using the concepts of real interest rate and expected rate of return, test the relationship between…

A: The link between saving and investment is a major source of disagreement in macroeconomics. Before…

Q: Calculate the bond yield rate % for a bond with an actual interest payment of $200 and a market…

A: Bond yield is the return gain from the coupon payments of the bond to the inventor.

Q: Define each of the following loan terms, and explain how they are related to one another: the prime…

A: Loan: It refers to the money that people takes from banks or from friends and relatives. The more…

Q: When the expected profit investment demand and the demand for loanable funds curve shifts A. rises;…

A: Profit: It means gain after subtracting all the expenses from the total amount received.

Q: Figure 26-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds…

A: Answer - Need to find - A shift of supply curve from S1 to S2 is called Given in the question - Two…

Q: What could cause a drop in interest rates? the supply curve for loanable funds shifting left, or the…

A: In an economy, the changes in interest rate depends upon the demand or supply of loanable funds in…

Q: In the loanable funds market Multiple Choice demand for loanable funds shifts right if the interost…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You believe that a corporation's dividends will grow 5 percent on average into the future. The…

A: The information given is:- Dividend paid per share = $5 Current price of stock = $75 Average growth…

Q: The premier rate, the rate on corporate paper, the simple interest rate on a bank loan requiring…

A: Introductions, Loan:- It alludes to the cash that people borrow from friends, family, or banks.The…

Q: Which of the following is the recommended guideline for the maximum amount to borrow in order to…

A: We are going to discuss the correctness of guidelines to decide the limit of borrowing by keeping…

Q: Assume that the real interest rate is 10%. A firm can invest in a piece of machinery that will…

A: PV factor in year N = (1.10)N. PDV in year N = Cash flow in year N x PV factor in year N

Q: Three students have each saved $1000. Each has an investment opportunity in which he or she can…

A: An investment project primarily consists of plans and actions that the investors carefully create…

Q: How can we determine the real (inflation-free) rate of return for a bond?

A: Real rate of return for a bond is a return on bonds, which is adjusted for inflation. Formula:

Q: Where does the demand for loanable funds come from in a closed economy? How does a government…

A: Closed economy: A closed economy is one that does not engage in international commerce, which means…

Q: ndicate which one of following statements is true for a coupon bond: A) When the price of a bond…

A: a gift certificate from the bond's issue date until it matures, the annual interest payment is…

Q: Explain the loanable funds theory of interest rates.

A: Loanable funds is all the money in the economy that people decides to save and lend which bridges…

Q: For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain!…

A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…

Q: The ratio of the interest payment to the principal for a given unit of time and usually expressed as…

A: Simple interest => p*r*t/100

Q: For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain!…

A: Bonds are defined as the fixed income securities issued by the private companies and government…

Q: Refer to the figure above. Assume that the loanable funds market initially is in equilibrium at…

A: New equilibrium is at point A where new demand curve(D2) and new supply curve(SA) intersect.

Q: Find the discount interest rate charged if PHP 42,000 is the present value of PHP 48,000 due in 20…

A: Discount rate means where interest amount already is deducted from the loan amount and debtor…

Q: Explain the loanable funds theory

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: The following data on capital stock (plant, equipment, housing and inventory) are available for the…

A: Given that, The stock of capital on January 1, 2009 is 11,500 billion and the stock of capital on…

Question

After reading the given descriptions, please place the correct label by the quadrant on the graph that best describes each person's position in the market for loanable funds.

Jolien decides not to take out a loan to fund expanding her grocery store because she projects it will only earn a return of 4%4%.
Osi closely follows the market for United States Treasury Bonds. He is willing to invest in them anytime the rate of return is 5%5% or higher, and sees that this is the case.
In order to open a new car wash facility expected to return 13%13%, Julius secures a loan.
John will shift his stock investments to corporate bonds when they return at least 10%10%. They do not, so he stays with stocks

S
8.0-
Quantity of loanable funds (billions of dollars)
Answer Bank
Osi
Julius
John
Jolien
Interest rate (%)

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

please explain tq
Annswer B, C and D.
Define the terms "use value" and "non-use value" with an example.
S 5
Calculate the value of gross value added at factor cost with given information:- Sales = $200 Change in stock = $40 Purchase of raw material = $160 Subsidy = $10
Self-Study Problem 4.4 In October 2020, Jack, a single taxpayer, sold IBM stock for $12,000, which he purchased 4 years ago for $4,000. He also sold GM stock for $14,000, which cost $17,500 3 years ago, and he had a short-term capital loss of $1,800 on the sale of land. The tax rates on long-term capital gains are as follows: Income Level Long-TermCapital Gains Rates Married filing jointly $0–$80,000 0% $80,001–$496,600 15% > $496,600 20% Single $0–$40,000 0% $40,001–$441,450 15% > $441,450 20% Head of household $0–$53,600 0% $53,601–$469,050 15% > $469,050 20% If Jack's other taxable income (salary) is $78,000, what is the amount of Jack's tax on these capital transactions?$fill in the blank 1
E65. Economic growth may raise income inequality though the incidence of poverty may get reduced. Discuss this proposition. 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.
The University of Professional Studies, Accra (UPSA) was founded in 1965 as a privateprofessional business education tuition provider. In 1999, by means of the Institute ofProfessional Studies Act, (Act 566), it became a tertiary institution with the mandate toprovide tertiary and profess ional education in Accountancy, Management and relateddisciplines. The University has a student population of approximately 12,000. TheUniversity now has a state -of-the-art Stude nts ’Center where food, snacks and drinks are served to students and staff. Nevertheless, a sizeablenumber of UPSA students patronize Auntie Ama’s (ATM) rice and beans food located at MadinaEstate close to the Home Made restaurant. Assume all other restaurants and food joints on campusand at Madina Estate with the exception of ATM food were able to reduce the price of their food.Further, suppose the local municipal authority decides to impose tax on ATM food. With the aidof a diagram, what will be the effect of these events…
The population of Ectenia is 100 people:40 work full-time,20 work half- time but would prefer to work full-time,10 are looking for a job,10 would like to work out so discouraged they have given up looking,10 are not interested in working because they are full-time students,and 10 and retired.What is number of unemployed?a.10b.20c.30d.40
answer an discuss pls
Define the term net present worth(NPW)?
Define and quantify the loss of purchasing power?