A country has national saving of $50 billion, government expenditures of $40 billion, domestic investment of $15 billion, and net capital outflow of $65 billion. What is its supply of loanable funds? A. $115 billion B. $50 billion C. $40 billion D. $90 billion
Q: Which of the following is an example of a macroeconomic indicator? A) The price of a specific…
A: Macroeconomic indicators are statistics or data points that provide insights into the overall…
Q: 6. Study Questions and Problems #6 Suppose you deposit $2,000 cash from under your mattress in First…
A: A balance sheet is a financial statement that shows the record of the liabilities and assets of a…
Q: each will specialize in. (c) Please derive the relative supply of X goods in terms of Z. (d** Bonus)…
A: The Production Possibility Frontier (PPF) shows the highest possible combinations of two goods that…
Q: Suppose the market demand function for newspapers is given by QD=90-3P. In the production of…
A: a. Pe = 24; Qe = 18 b. Socially optimal Pe = 25 ; Qe = 15 c. Total surplus in private market =…
Q: Describe the statistical indicators of Japan including their GDP, employment, debt, budget,…
A: The question is asking for a comprehensive overview of Japan's economic indicators, including Gross…
Q: At first, it might seem that valuable commodities, such as cattle or lead bars, might be good forms…
A: Money is any commodity that is generally accepted as payment for products and services and repayment…
Q: (1) Two firms produce goods that are imperfect substitutes. If firm 1 charges price p₁ and firm 2…
A: The demand function for firm 1 : The demand function for firm 2 : Marginal cost:
Q: a. Define GDP (Gross Domestic Product) and discuss its significance as a measure of economic…
A: GDP refers to the total monetary value of all final goods and services that a nation produces in its…
Q: Identify the Surpluses. The graph to the right shows a supply curve and a demand curve and several…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: NUE (Dollars per phone case) TOTAL COST AND REVENUE (Dollars) Suppose Jayden operates a handicraft…
A: Total cost refers to the total amount of expense incurred during the production process. It includes…
Q: What is the likely effect on inflation when a central bank increases the money supply rapidly? A.…
A: The issue is recognizing the logical impact of expansion when a national bank chooses to expand the…
Q: Discrete Compounding; /=8% Single Payment Compound Amount Factor To Find F Present Worth Factor…
A: The table you provided shows compound interest and uniform series factors for discrete compounding…
Q: nswer the following, providing a graphical illustration along with your answer where necessary: a)…
A: A dominant strategy is an expression in game theory that implies the optimal option for a player…
Q: Suppose the government borrows $20 billion more next year than this year. The following graph shows…
A: Impact of Increased Borrowing: The need for loanable cash will rise if the government borrows an…
Q: In which market structure would you find a large number of firms producing slightly differentiated…
A: The problem here is to identify the market structure characterized by a large number of firms, each…
Q: Which of the following represents a longrun adjustment? Murtiple Choice A farmer uses an extra dose…
A: In the long run, all factors of production are variable, and firms can enter or exit the industry.…
Q: Eswatini and Suriname produce perfume and wood according to the following table: Eswatini Suriname…
A: Opportunity cost means the alternative benefit which is used for opting for a one option over the…
Q: How does increasing the level of public education spending typically affect the long- term economic…
A: The issue is to distinguish the effect of expanding state-funded schooling spending on the drawn out…
Q: ABC company has to decide whether to build a new plant. ABC is contemplating whether to build the…
A: Decision tree is a graphical representation or a model used in choice analysis to depict a…
Q: According to the figure, what combination would have caused equilibrium to move from point A to…
A: The demand and supply framework is a fundamental concept in economics that analyzes the behavior of…
Q: The Demand for Union Labor The Supply for Union Labor In the following table, identify which side of…
A: The labor market is a place where the labor services are exchanged for wages. It is a market of…
Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a…
A: The projected value that an asset will have when its useful life comes to an end and it can no…
Q: (1) (2) (3) (4) (5) Qd Qd Price Qs 60 50 $ 12 80 90 70 60 11 70 80 98 70 10 60 78 100 80 9 50 60 110…
A: Supply refers to the quantity of goods or service that a seller is willing and able to sell at a…
Q: In the 1960s, water was inexpensive. However, by 1965 Canada saw one of the country’s worst…
A: The question aims to understand the impact of the drought in Canada during 1965-66 on two specific…
Q: (Figure: The Market for Skateboards) Use Figure: The Market for Skateboards. If the government…
A: Demand curve is a graphical representation of quantity demanded at various prices.Supply curve is a…
Q: A country has a net capital outflow of $700 billion and domestic investment of $120 billion. What is…
A: The question is asking us to calculate the quantity of loanable funds demanded in a country given…
Q: Billy is hiring workers to help him install solar panels. The table below presents the marginal…
A: Marginal revenue product is the addition to total revenue by selling the units that are produced by…
Q: Which of the following is true? O Potential GDP is determined by the available supply of labor,…
A: Potential GDP or potential output, refers to the level of production that an economy can sustainably…
Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that…
A: The objective of the question is to find the equilibrium level of income or real GDP for the given…
Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round…
A: IRR Refers to a metric used in financial analysis to estimate the profitability of potential…
Q: In economics, what is meant by the term 'elasticity'? A) The ability of a good to stretch…
A: The objective of the question is to understand the economic concept of 'elasticity'.
Q: The Ministry of Misallocation has decreed that the production of widgets must be 7000 each month and…
A: Deadweight loss is the financial loss occurring due to loss of efficiency in the market. It is the…
Q: Suppose there are only two gas stations in the remote town of Nome, Alaska and they are competitors.…
A: The graph for the demand of gasoline is given as-There are two gas stations in the remote town of…
Q: 5. Consider the cost for a firm as described by the function: 3000 C(q) = 200 + q². 21 a. What are…
A: The objective of the question is to understand the cost structure of a firm, derive the average and…
Q: Case P TR TC TFC TVC AC AVC MC 1. 2. 1000 5000 $1,500 $5.50 5.00 8000 1000 3.50 3.00 4.50 At Min. 3.…
A: Average variable cost is the cost of the variable expenses of a single unit of goods. The firm has…
Q: Fletcher Company has three products with the following characteristics: Product A Product B Product…
A: Let me state the given data, Product AProduct BProduct CMonthly sales in…
Q: Bayesian Nash equilibrium
A: A Bayesian Nash equilibrium represents a state in which each player, understanding their facts and…
Q: b. How do fiscal and monetary policies differ in their approaches to managing the economy during…
A: A recession is an economic downturn described by a critical and sustained decrease in economic…
Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…
A: An essential financial analysis idea is the annual worth which is used to determine whether an…
Q: The graph below depicts the aggregate demand and aggregate supply curves for the real economy. We…
A: Output gap measures the difference between the actual output and the expected output. The economy…
Q: How does horizontal growth differ from vertical growth as a corporate strategy? Discuss different…
A: The objective of this question is to understand the difference between horizontal and vertical…
Q: The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms…
A: The use of knowledge is non-excludable and non-rivalrous in nature, meaning that even if one person…
Q: am. 161.
A: The objective of this question is to determine the breakeven point in terms of units of production…
Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private closed economy is such that…
A: The objective of the question is to calculate the equilibrium level of income or real GDP for a…
Q: The table below shows the market for credit cards at various interest rates in millions of dollars.…
A: The interest rate is the rate at which borrowers pay back an additional amount, which is the…
Q: If there is a surplus of loanable funds, the quantity demanded is A. less than the…
A: The question is asking about the relationship between the surplus of loanable funds, the quantity…
Q: 6. Complete the following table and answer the accompanying questions. a. At what level of the…
A: Net benefit compares the total benefit against the harm on the same scale. It can also be termed as…
Q: Year Real GDP Попознае вар dateActual and potential output in the United States and Potential Output…
A: Potential output : It is the output level that a country can produce given the level of physical…
Q: Which of the following would cause a rightward shift of the supply curve? a) Increase in production…
A: A rightward shift of the supply curve indicates an increase in the quantity supplied at every given…
Q: Assume that Co = 40, G = 220, T = 120, I = 150, X = 44, Z = M = 54, b = mpc = .75 and t =.25, the…
A: The national income is the summation of a country's final goods and services. It is a yardstick…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Q2.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.What do loanable funds finance? What is the source of loanable funds? Loanable funds finance _______. A. business investment, the government budget surplus, and international borrowing B. business investment, the government budget deficit, and international investment or lending C. private saving, the government budget surplus, and international borrowing D. private saving, the government budget deficit, and international investment or lendingWhen 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!
- A country has a net capital outflow of $700 billion and domestic investment of $120 billion. What is the quantity of loanable funds demanded? A. $700 billion B. $120 billion C. $580 billion D. $820 billiona. Consider the Market for Loanable Funds in a closed economy. What would be the impacts of the following events on interest rates and investment. i. The government introduces a tax credit for savings accounts of up to $10,000 per year. ii. The government introduces a tax credit for savings accounts of up to $10,000 per year, and at the same time it repeals an investment tax exemption provision. iii. The government raises the tax rates. iv. The government issues bonds worth $10 billion. b. In a closed economy GDP = $1,400, private saving = $225, government budget deficit = $15, and government spending $25 (all numbers are in billions). Calculate national saving, taxes, and consumption. %3D(A) Suppose that in a closed economy GDP is equal to 15,000, taxes are equal to 2,000, Consumption equals 9,000, and government expenditures equal 4,000. What are private saving and public saving? a. 4000 and –2000 b. 4000 and 2000 c. 2000 and –2000 d. 2000 and 3000 (B) A lower interest rate induces people to a. save less, so the demand for loanable funds slopes upward. b. save less, so the demand for loanable funds slopes downward. c. invest more, so the demand for loanable funds slopes upward. d. invest more, so the demand for loanable funds slopes downward. (C) Alex puts $300 into an account when the interest rate is 5 percent. Later he checks his balance and finds he has about $330,75. How long did Alex wait to check his balance? a. 2 b. 2.5 c. 3 d. 4.5
- Why, other things remaining the same, does a rise in the real interest rate decrease the quantity of loanable funds demanded? The quantity of loanable funds demanded decreases because at a higher interest rate _______. A. fewer projects have an expected rate of profit below the real interest rate B. more projects have an expected rate of profit that exceeds the real interest rate C. banks want to lend more D. fewer projects have an expected rate of profit that exceeds the real interest rate3. If at a given real interest rate desired national saving is $120 billion, domestic investment is $84 billion, and net capital outflow is $56 billion, then at that real interest rate in the loanable funds market there is a a. surplus. The real interest rate will fall. b. shortage. The real interest rate will fall. c. shortage. The real interest rate will rise. d. surplus. The real interest rate will rise.Use the analysis for the market for loanable funds diagram to illustrate and explain how the following government policy affects the economy’s saving and investment. Policy 1: Suppose the government starts with a balanced budget and then, because of a tax cut or spending increase, starts running a budget deficit.State, explain and draw the loanable funds diagram for i,ii and iii. (i) which which loanable funds curve would this policy affect?(ii) which way would the loanable funds curve shift?(iii) what would be the the impact on interest rates?
- 2. Suppose GDP equals $09 trillion, consumption equals $3 trillion, the government spends $2.5 trillion and has a budget deficit of $450 billion. Try to find public saving, taxes, private saving, national saving, and investment.If at a given real interest rate desired national saving is $115 billion, domestic investment is $60 billion, and net capital outflow is $40 billion, then at that real interest rate in the loanable funds market there is a A. surplus. The real interest rate will fall. B. surplus. The real interest rate will rise. C. shortage. The real interest rate will rise. D. shortage. The real interest rate will fall.What event raises the equilibrium real interest rate and decreases the equilibrium quantity of loanable funds? _______ raises the equilibrium real interest rate and decreases the equilibrium quantity of loanable funds. A. A decrease in default risk B. An increase in expected future income C. An increase in disposable income D. A decrease in wealth Thank you!@# 1%2