The table below shows Demand and Supply for loanable fund at given time. Real interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund supplied (billion $) 0.01 1000 400 0.02 950 450 0.03 900 500 0.04 850 550 0.05 800 600 0.06 750 650 0.07 700 700 0.08 650 750 0.09 600 800 0.10 550 850 0.11 500 900 0.12 450 950 0.13 400 1000 0.14 350 1050 0.15 300 1100 Instructions: Using excel, find the equilibrium real interest rate and quantity of loanable fund. show the equilibrium on a graph. If this country experiences a recession business cycle phase that decreases the demand for loanable fund by $200 billion. Find the new equilibrium real interest rate and quantity of loanable fund. Show the shift on the graph. list Two factors that shift SLF rightward and two factors that shift DLF rightward What is the meaning of crowding out? Support your answer with a graph.
The table below shows Demand and Supply for loanable fund at given time.
|
Real interest rate |
Quantity of loanable fund demanded (billion $) |
Quantity of loanable fund supplied (billion $) |
|
0.01 |
1000 |
400 |
|
0.02 |
950 |
450 |
|
0.03 |
900 |
500 |
|
0.04 |
850 |
550 |
|
0.05 |
800 |
600 |
|
0.06 |
750 |
650 |
|
0.07 |
700 |
700 |
|
0.08 |
650 |
750 |
|
0.09 |
600 |
800 |
|
0.10 |
550 |
850 |
|
0.11 |
500 |
900 |
|
0.12 |
450 |
950 |
|
0.13 |
400 |
1000 |
|
0.14 |
350 |
1050 |
|
0.15 |
300 |
1100 |
Instructions:
Using excel, find the equilibrium real interest rate and quantity of loanable fund.
show the equilibrium on a graph.
If this country experiences a recession business cycle phase that decreases the demand for loanable fund by $200 billion.
Find the new equilibrium real interest rate and quantity of loanable fund.
Show the shift on the graph.
list Two factors that shift SLF rightward and two factors that shift DLF rightward
What is the meaning of crowding out? Support your answer with a graph.
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