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- Lista the factors that affect the supply side of the loanable funds market. which factors shifts the curve?1. What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why this change happens9. Which are not a determinant of the supply of loanable funds a. tax incentives b. new technology C. changes in income d. asset prices e. economic outlook
- 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 //////What must have happened in the loanable funds market to produce the 2020 level of interest rates what caused this change?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; reduce
- Explain the impact of the government's Saving incentives on the market for loanable funds?In the loanable funds market, if firms become more optimistic about future profitability, then the a demand for loanable funds will increase, interest rates will increase, and private sector investment spending will increase. b demand for loanable funds will decrease, interest rates will decrease, and the equilibrium quantity of borrowing will decrease. c supply of loanable funds will increase, interest rates will decrease, and the equilibrium quantity of borrowing will increase. d supply of loanable funds will increase, interest rates will increase, and private sector investment spending will increase.A) How are credit markets different from goods markets and what are the major imperfections of credit markets? B) How does microfinance loans deal with these imperfections of the credit markets?
- Manipulate the graph to show what will happen to supply and demand in the market for loanable funds when the government budget deficit increases, changing the equilibrium quantity of loanable funds by 3 percentage points. Ceteris paribus, what is the new interest rate? interest rate: 6 Ceteris paribus, private investment would decrease. not change. increase. % Interest rate (%) 10 9 8 7 6 4 3 2 1 0 0 Supply 6 Demand 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Quantity of loanable funds (% of GDP)Pick South America - Northern Africa. Does this country also experience similar or different changes in savings during the pandemic? Discuss the impacts and illustrate with a loanable fund market diagram.What ratios are used to determine whether borrowers have the economic ability to repay a mortgage? a. Both a and b b. Housing expense ratio c. Both b and c d. Total obligations ratio e. Working capital ratio
