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In 2012, the Lee family had disposable income of $90,000, wealth of $360,000, and an expected future income of $90,000 a year. At a real interest rate of 2 percent a year, the Lee family saves $15,000 a year; at a real interest rate of 4 percent a year, they save $20,000 a year; and at a real interest rate of 6 percent, they save $25,000 a year. Draw a point to show the quantity of loanable funde supplied by the I eo family when the real interest rate (...)

In 2012, the Lee family had disposable income of $90,000, wealth of $360,000, and an expected future income of $90,000 a year. At a real interest rate of 2 percent a year, the Lee family saves $15,000 a year; at a real interest rate of 4 percent a year, they save $20,000 a year; and at a real interest rate of 6 percent, they save $25,000 a year. Draw a point to show the quantity of loanable funde supplied by the I eo family when the real interest rate (...)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In 2012, the Lee family had disposable income of $90,000, wealth of $360,000, and an expected future income of $90,000 a year. At a real interest rate of 2 percent a year, the Lee family saves $15,000 a year, at a real interest rate of 4 percent a year, they save $20,000 a year; and at a real interest rate of 6 percent, they save $25,000 a year. C Draw a point to show the quantity of loanable funds supplied by the Lee family when the real interest rate is 1) 2 percent a year. Label it 1. 2) 4 percent a year. Label it 2. 3) 6 percent a year. Label it 3 Draw the Lee family's supply of loanable funds curve through the points. Label it. 7.0- 6.0- 5.0- 4.0- 3.0- 2.0- Real interest rate (percent per year) 1.0+ 13 15 17 19 21 23 25 27 Loanable funds (thousands of 2012 dollars)
Transcribed Image Text:In 2012, the Lee family had disposable income of $90,000, wealth of $360,000, and an expected future income of $90,000 a year. At a real interest rate of 2 percent a year, the Lee family saves $15,000 a year, at a real interest rate of 4 percent a year, they save $20,000 a year; and at a real interest rate of 6 percent, they save $25,000 a year. C Draw a point to show the quantity of loanable funds supplied by the Lee family when the real interest rate is 1) 2 percent a year. Label it 1. 2) 4 percent a year. Label it 2. 3) 6 percent a year. Label it 3 Draw the Lee family's supply of loanable funds curve through the points. Label it. 7.0- 6.0- 5.0- 4.0- 3.0- 2.0- Real interest rate (percent per year) 1.0+ 13 15 17 19 21 23 25 27 Loanable funds (thousands of 2012 dollars)
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