What happens to the market for loanable funds when interest rates increase? Planned investments increase. Planned investments is not effected There is a decrease in demand for loanable funds. There is a decrease in quantity demanded for loanable funds.

Q: 10. Assume that a consumer's income is high enough so that with quasilinear preferences, her demand ...

A: Price Effect/ Total Effect: The price effect refers to the change in demand of a good due to a chang...

Q: The discount rate when the net present value of a project is zero is called the rate of return margi...

A: The answer is as follow :

Q: Explain Keynes’s theory of investment and why it is central to his more general theory of output and...

A: Mistrust of the rationality of free-market decision making pervades the atmosphere. A book by Englis...

Q: QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x 1 is a var...

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

Q: Explain the impact of Minimum wage laws on the labor supply, and provide statistical data for the sa...

A: The law of demand applies in labor markets thusly: A more significant payor wage-that is, a greater ...

Q: Why GDP is criticized as a “deeply foolish” indicator of how an economy? What are the different acti...

A: The measure that depicts the total value of goods and services that are being produced in an economy...

Q: In the world of economics, this is a very powerful term that can make or break relationships, busine...

A: There are different factors that can contribute to making or breaking relationships, businesses, fir...

Q: A man wants to make 14% nominal interest compounded semiannually on a bond investment. How much shou...

A: The interest rate before inflation is referred to as the nominal interest rate. If a loan's marketed...

Q: You may need to use the appropriate appendix table or technology to answer this question. Consider t...

A:

Q: 5. The market for loanable funds and government policy The following graph shows the market for loan...

A: Scenario -1    Individual savings will benefit from increasing the maximum contribution to an IRA. A...

Q: Question on Harrod-Domar Growth Model.  Show (complete mathematical solution) how the net savings r...

A: Economic growth: When there is an increment in the generation of output is taking place then it will...

Q: A man wishes to withdraw an amount of P5,000 per month from the bank for 3 years. If interest is 1% ...

A: Solution:-  Monthly amount for withdrawal = 5000 (A) Time= 3 years Time in month = 3*12 = 36 (N) Int...

Q: Price 10t Supply 8 Demand 60 120 160 210 300 Quantity 27. Refer to the graph above. With an effectiv...

A: A price ceiling is a type of price control levied by the government.  It is the highest price at whi...

Q: Consider a simple economy with a single good: bread. There are 5 loaves of bread and two potential c...

A: Concept Pareto efficiency, also known as Pareto optimal, is an economical situation in which resourc...

Q: The demand function for rooms is Q,(p) = 700 - 5p, where Q, is the number of rooms demanded and p is...

A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost. 

Q: describe the specific influences of Quesnay and the Physiocrats on Adam Smith

A: Adam Smith was a Scottish philosopher as well as an economist who was a pioneer of political economi...

Q: "After settlement the average weekly wage in a factory had increased from $ 8,000 to $ 12,000 and th...

A:

Q: 4. Suppose that there is a negotiation between two players over a painting. Person 1, the seller, ha...

A: In-game theory, a subgame perfect equilibrium is a more advanced variation of Nash equilibrium used ...

Q: Instructions: Enter your responses as a percentage rounded to the nearest whole number. What was the...

A: Introduction   In the above diagram consumption and investment, spending has given from 2000 - 08.  ...

Q: ‘Utility services cost less even though they cost more’, elaborate this law with the help of suitabl...

A: Utility services are less expensive, despite the fact that they are more expensive. Consider a compa...

Q: A laboratory has $4.2 million in revenues and $3.85 million in costs. What is its operating margin? ...

A: As it is given to us that revenue = $4.2 million cost=$3.85 million invested money =$6 million

Q: Total Cost AVC AFC ATC MC -- -- 1 25 40 65 a5 20 16 20 216 25 29 3 15 20 25 4 105 145 4 (15) For any...

A: Since you asked for only drawing the diagram, we are doing that only.

Q: Erwin expects to receive 20,000 dollars in 10 years. If interest is computed at 6% compounded contin...

A: Given: Amount (A)=$20000 Interest rate (r)=6% compounded continuously Number of years (t)=10

Q: The chart below shows a real wage index in England between 1260 and 1800. Figure 2.16: Real wages pr...

A: The below  graph  shows real wage index in England between 1260 and 1800. The Black Death, a catast...

Q: Using Okun's law, fill in the four pieces of missing data in the table below. All of the following d...

A: Given: 2015: Real GDP=7840 Potential GDP=8000

Q: Ellen's total cost is; C = 100+ Q² The market price of eggs is: P = 20 d. Find the equations of marg...

A: Total Cost : C=100+Q2 Price=20   a. Marginal Cost is the change in the total cost due to the change ...

Q: Philippine Society of Civil Engineers is planning to put up its own building, and two proposals (5-y...

A: Computing the following: 1. Equivalent present cost of Proposal A. 2. Equivalent present cost of Pro...

Q: Consider two people called Young and Old. Young and Old live together. Young can choose to party or ...

A: Bargaining or haggling is a type of negotiation in which the buyer and seller of a product or servic...

Q: Problem 2. Consider the following Phillips Curve n = En – 0.6(u – 0.05) a) Explain the above Philips...

A: When represented or charted graphically, the Phillips curve illustrates an inverse relationship betw...

Q: Alvin Yu was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to h...

A: Given,  Year 1988 is year 0The Payments from year1 to year10 = 2000 (P)Withdrawls from Year18 to Yea...

Q: Explain how differences in technology can cause trade between countries.

A: The imitation lag theory attempts to show that technological innovation forms the basis to internati...

Q: Provide an example of a direct quote of an exchange rate

A: In the foreign exchange market, a direct quote is a rate quotation. It compares the value of one uni...

Q: 6. What will be the new short-run equilibrium Real GDP in this case? Are we in an inflationary gap o...

A: Output gap is the difference between potential output and actual equilibrium output. 

Q: 56​, K=103​, the marginal product of labor is 2 and the marginal product of capital is 2. What is th...

A: Marginal rate of technical substitution alludes to the rate at which the inputs are substituted in p...

Q: Each year, Johan typically does all his own landscaping and yard work. He spends $204 per year on mu...

A:

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is...

A: Budget line is the price line shows the various combinations of two goods that can be bought with gi...

Q: a) What are equilibrium price and equilibrium quantity? Calculate consumer surplus, producer surplus...

A: Equilibrium price and equilibrium quantity is decided at the point where demand and supply curve int...

Q: In a competitive market with free entry and exit from the market a permanent rise in demand will lea...

A: A permanent increase in demand raises market quantity, and the market price for each business climbs...

Q: Suppose an economy has an MPC = 0.875. 1. If government spending increase by $100, how much wi...

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption, th...

Q: As the manager at Clean-Well Corporation, your research staff provided you with the estimated demand...

A: Normal good refers to those good which shows a positive relationship between income and demand for t...

Q: Suppose that autonomous consumption is 1,500, government purchases are 500, planned investment spend...

A: We can find the equilibrium GDP by the following formula: Y = C + I + G + NX where,  Y is equilibriu...

Q: Hello can any one help with this Economics question: A restaurant serves two special dishes, A and B...

A:

Q: Which of the following statements are correct? Select one: O a. Households smooth their consumption ...

A: In macroeconomics, the household sector consumes the final items created by the production sector. I...

Q: Refer to the graph shown. Within which section(s) of the production function is marginal product dec...

A: Here, the given graph shows the production function of a firm to explain the different phases of the...

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 s...

Q: If Mexican exports to Canada decline by $14 billion, by how much will Mexico's aggregate spending dr...

A: Aggregate Spending = Aggregate Expenditure = Consumption Exp (C) + Investment Exp (I) + Govt Exp (G)...

Q: Firzaowns 3 iced milk coffee bottlesand 9 toasted bread while Razi owns 8 iced milk coffee bottles a...

A: If two people have utility functions for two things as well as endowments for the two goods. The Edg...

Q: Learning Task 7: List down some daily activities and tell how these contribute to climate change. Al...

A: Climate change is a very debated topic in the global scenario and human activities are one of the re...

Q: A monopolist with a marginal cost MC = 2 faces two types of customer groups. Type 1 has it inverse d...

A:

Q: A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of...

A: Dear learner you have posted a question with multiple sub parts, as per our policy we have solved on...