The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate (blank 1)  and quantity (blank 2) in the capital financial market?  Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate (blank 3) and quantity (blank 4).

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates.

  • What is the equilibrium interest rate (blank 1)  and quantity (blank 2) in the capital financial market? 

Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate.

  • Calculate the new equilibrium interest rate (blank 3) and quantity (blank 4). 
  •  
Qd
Interest Rate
Qs
5%
130
170
6%
135
150
7%
140
140
8%
145
135
9%
150
125
10%
155
110
Transcribed Image Text:Qd Interest Rate Qs 5% 130 170 6% 135 150 7% 140 140 8% 145 135 9% 150 125 10% 155 110
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