EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 26, Problem 4MCQ
To determine
To find:
The option that correctly explains the cause for an increase in the supply of loanable funds.
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Students have asked these similar questions
When does the supply of loanable funds increase?
The supply of loanable funds increases when disposable income _______ or wealth _______.
A.
decreases; increases
B.
decreases; decreases
C.
increases; increases
D.
increases; decreases
Thanks!
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; right
An increase in interest rate would lead to a _____ it's supply of loanable funds
a. No effect
b. None
c. Increase
d. Decrease
#### Correct answer //////
Chapter 26 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 26 - Prob. 1SPPACh. 26 - Prob. 2SPPACh. 26 - Prob. 3SPPACh. 26 - Prob. 4SPPACh. 26 - Prob. 5SPPACh. 26 - Prob. 6SPPACh. 26 - Prob. 7SPPACh. 26 - Prob. 8SPPACh. 26 - Prob. 9SPPACh. 26 - Prob. 1IAPA
Ch. 26 - Prob. 2IAPACh. 26 - Prob. 3IAPACh. 26 - Prob. 4IAPACh. 26 - Prob. 5IAPACh. 26 - Prob. 6IAPACh. 26 - Prob. 7IAPACh. 26 - Prob. 8IAPACh. 26 - Prob. 9IAPACh. 26 - Prob. 10IAPACh. 26 - Prob. 1MCQCh. 26 - Prob. 2MCQCh. 26 - Prob. 3MCQCh. 26 - Prob. 4MCQCh. 26 - Prob. 5MCQCh. 26 - Prob. 6MCQCh. 26 - Prob. 7MCQCh. 26 - Prob. 8MCQ
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Similar questions
- If the interest rates increase this will _____ the quantity of loanable funds demanded, and if the interest rates decrease this will______it. Select one: a. increase; reduce b. increase; increase c. reduce; increase Od. reduce; reducearrow_forwardUsually, when the supply of loanable funds increases, then interest rates Select one: a. Might increase or decrease. b. Increase. c. Remain unchanged. d. Decrease.arrow_forward4.4 how am i supposed to show this, are there going to be two lines crossing over eachother?arrow_forward
- Qu Listen In which situation do you NOT contribute to the supply of loanable funds? a) You charge a vacation on a credit card. b) You pay off your mortgage. c) You open a new savings account. d) You make the final payment on your private student loan.arrow_forward12. Suppose the interest rate decreases. Other things constant, how will the loanable funds market be affected? a. The demand for loanable funds curve will shift to the right. b. The demand for loanable funds curve will shift to the left. c. The quantity of loanable funds demanded will increase. d. The quantity of loanable funds supplied will increase. 13. Suppose a research lab fired a chemist, and then an environmental protection group hired the chemist at the same salary. What would be the net effect of these events on aggregate demand? a. The aggregate demand would shift rightward. b. The aggregate demand would shift leftward. c. The aggregate demand would become steeper. d. The aggregate demand would remain the same.arrow_forward#18. What would happen in the market for loanable funds if the government were to increase the tax on interest income? a The supply of loanable funds would shift right. b The demand for loanable funds would shift right. c The supply of loanable funds would shift left. d The demand for loanable funds would shift left.arrow_forward
- 1. What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why this change happensarrow_forwardQ)Consider the market for loanable funds. If economic conditions are expected to become better, then the demand for loanable funds will _____ and the supply of loanable funds will _____. decrease; not change decrease; decrease not change; increase increase; decreasearrow_forwardQ2.Using the Domestic Loanable funds market diagram, Explain what happens to Private savings, private investment spending and the interest rate if each of the following events occur. Assume there are no capital inflows or outflows. b. Households save more in anticipation of a downturn in economic activity in the future.arrow_forward
- Only typed answer When the government funds spending projects by borrowing money (issuing government bonds), demand in the loanable funds market will _______ and interest rates generally ______. A: Increase; rise. B: Decrease; fall. C: Decrease; rise. D: Increase; fall. Please provide an explanation as well. Thank you!arrow_forward4.4 and 4.5 pleasearrow_forwardExplain answer correctlyarrow_forward
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