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- The future value of a dollar as the interest rate increases and the longer the money remains invested Select one: a. decreases; increases b. decreases; decreases c. increases; increases 21 d. increases; decreasesThe future value of a dollar as the interest rate increases and the longer the money remains invested Select one: a. increases; decreases b. increases; increases c. decreases; increases d. decreases; decreases3. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. Supply Demand 100 200 300 400 500 LOANABLE FUNDS (Billions of dollars) A INTEREST RATE (Percent) m 0 0 600
- individual spends $20 per day. Suppose that this person pays for all her purchases using her credit card. She withdraws no money from her bank account until the morning of the fourth day, when she withdraws the whole amount necessary to pay for her credit card purchases over the previous four days. Calculate the amount of money this person withdraws each time she goes to the bank.The withdrawal of income from circular flow of income example saving is known as____ One wordExercise 1. Describe the primary activity happening in a market 2. Define financial market
- 1. Why is it so difficult to talk about money? 2. What is most helpful or vital to developing a workable budget?Stock market becomes a little more volatile and households decide to sell their stocks and use the money to lend to corporation. As a result of this additional lending, Group of answer choices 1. Supply of bonds will increase, price of bonds will increase, and interest rate will decrease. 2. Demand for bonds will increase, price of bonds will decrease, and interest rate will decrease. 3. Supply of bonds will increase, price of bonds will increase, and interest rate will increase. 4. Demand for bonds will increase, price of bonds will decrease, and interest rate will increase. 5. Supply of bonds will increase, price of bonds will decrease, and interest rate will increase. 6. Demand for bonds will increase, price of bonds will increase, and interest rate will increase. 7. Supply of bonds will increase, price of bonds will decrease, and interest rate will decrease. 8. Demand for bonds will increase, price of bonds will increase, and interest rate will decrease.If, at a given interest rate, the quantity of savings supplied is less than the quantity of investment demanded, what can we conclude? A) B) C) D) There is a shortage of savings and real interest rates will fall. There is a surplus of savings and real interest rates will fall. There is a surplus of savings and real interest rates will rise. There is a shortage of savings and real interest rates will rise. Show Transcribed Text Which of the following does NOT occur in an economy experiencing full employment? underemployment A) B) structural unemployment C) cyclical unemployment D) frictional unemployment S Show Transcribed Text If professors lose their positions at universities because of the widespread introduction of courses over the Internet, what would faculty members that remained unemployed be considered? underemployed structurally A) B) unemployed frictionally C) unemployed cyclically D) unemployed. S
- Interest Rate (%) 2004 0 $75 150 225 Investment ($) Price Level Interest Rate (%) AS Q₁ Real GDP X Investment Demand 0 $50 100 150 Investment ($) -AD₂ (/=$100) AD3 (/=$50) Z AD₁ (/=$150) O Increase the money supply from $75 to $150 billion. O Increase the money supply from $150 to $225 billion. O Decrease the money supply from $225 to $150 billion. O Make no change in the money supply. Refer to the above diagrams, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 12 percent. What should the Fed do to achieve a noninflationary full-employment level of real GDP (Qf)?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. InterestRate QuantitySupplied QuantityDemanded5% 98 2216% 129 1917% 160 1608% 178 1429% 196 12410% 214 106 What is the equilibrium interest rate and quantity of loaned funds? r = % Q = Suppose there is a decrease in demand of money, what will happen to interest rates and quantity? Increase in Interest Rates, Increase in Quantity?Increase in Interest Rates, Decrease in Quantity?Decrease in Interest Rates, Increase in Quantity?Decrease in Interest Rates, Decrease in Quantity?What would be the value of consumption if savings is $1300 and the value of Income is $2200