Economists who forecast a future of secular stagnation believe that the   ▼   demand   supply   for loanable funds may be low in coming years because   A. the price of​ capital, particularly information technology goods such as​ computers, has been falling relative to the prices of other goods.   B. rising population growth in the United States will increase the demand for housing.   C. modern information technology firms require much more capital than older industrial firms.   D. firms must meet their needs for capital with higher levels of expenditure

Q: Explain and draw each of the following parts (A,B,C), with each explantion given below: ( Graph…

A: A. Market for loanable fund The loanable funds market does have a supply and demand curve as well as…

Q: Other things the same, people in the U.S. would want to save more if the real interest rate in the…

A: Savings is a positive function of interest rate according to the Classical model while it is a…

Q: 2 a. Differentiate between steady state stock of capital and golden rule level of capital

A: At any movement capital stock is an important factor that determines output of an economy but…

Q: 3.3 Explain and show graphically how an increase in household saving affects the equilibrium…

A: The market for loanable funds represents the interaction between borrowers and lenders in the…

Q: Use the analysis for the market for loanable funds diagram to illustrate and explain how the…

A: The equilibrium in the loanable funds market occurs at such an interest rate where the demand for…

Q: When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases…

A: Loanable fund market consists of supply and demand of loanable funds.  The supply of loanable fund…

Q: Suppose government  moves to increase its budget deficit by $30million. With aid of the market for…

A: A loanable funds market is one where households and financial institutions supply these funds to the…

Q: How does the lack of collateral value affect economic growth? Discuss its impact on 1) capital…

A: The amount of assets put up as collateral to secure a loan is referred to as collateral value. This…

Q: If foreign income and wealth decrease, this would most likely a. not affect the market for loanable…

A: If foreign income and wealth decrease, this would most likelya. not affect the market for loanable…

Q: Which of the following reasons could cause the demand curve for loanable funds to shift to the right…

A: Investment is the source of demand for loanable funds and saving is the source of supply of loanable…

Q: in a loanable funds model the economy is at its longrun equilibrium and suddenly there is a rise in…

A: Loanable funds model explains the situation of the capital market where households engaged in a…

Q: When does the supply of loanable funds increase? The supply of loanable funds increases when…

A: Financial institutions acts as intermediaries between the lenders and the borrowers . The deposits…

Q: An increase in interest rate would lead to a _____ it's supply of loanable funds a. No effect b.…

A: Market of loanable funds: The market for loanable funds explains the procedure of borrowing. It…

Q: 12. Suppose the interest rate decreases. Other things constant, how will the loanable funds market…

A: The desire for all final products and services generated in an economy is measured as aggregate…

Q: Draw a graph of the supply and demand of loanable funds. Then, show how the interest rate will be…

A: The loanable funds market is used to determine the equilibrium rate of interest and equilibrium…

Q: Assume that initially a country has a loanable funds supply curve of S₁. Now, imagine that interest…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. B C A…

A: Demand curve is the downward sloping curve. Rightward shift in demand curve shows the increase in…

Q: Using the loanable funds theory, illustrate the effect of the following on the level of interest…

A: Loanable fund theory suggests that interest rates are determined from the demand and supply of…

Q: Question 1 a. Use the loanable funds diagram to explain how you would expect an increase in…

A: Loanable funds market shows that how demand and supply of loanable funds affect interest rates and…

Q: Consider the market for loanable fund. Answer the question below. 2.a. The market equilibrium…

A: Please find the answer below.

Q: Find a quote below and illustrate the effect of these phenomena on the world market for loanable…

A: The loanable funds market refers to the market where borrowers and lenders come together to exchange…

Q: If the quantity of loanable funds supplied is greater than the quantity demanded, what are the…

A: Loanable Funds: Loanable funds have been given a prominent role by neo-classical economists. For…

Q: In your words describe and or explain the relation between savings and investment in an open market.…

A: Savings vary from investing in that money is frequently put into a bank savings account or a fixed…

Q: If the interest rate in the loanable funds market is currently below the equilibrium level, then the…

A: Loanable funds market refers to the interaction of borrowers and lenders that determines the…

Q: Using the framework of the supply and demand of loanable funds, analyze the possible effect on the…

A: The objective of the question is to analyze the possible effect on the equilibrium interest rate in…

Q: Using a graph for the loanable funds market of this economy, show what are the effect on the…

A: The market for loanable funds describes how borrowing happens in the market. The supply of loanable…

Q: 4.1 If real GDP in a small country in 2017 is $8 billion and real GDP in the same country in 2018 is…

A: GDP or gross domestic product refers to the total value of all goods and services produced in an…

Q: Consider a loanable funds market of Pakistan. Suppose, if government want to implement the policy to…

A: The nations around the world tries to enhance their development by increasing the investment…

Q: Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total…

A: A steady-state economy would have a stable population, with birth rates roughly matching mortality…

Q: b) households

A: In the loanable market the amount of loan and interest rate  is decided by in the intersection of…

Q: Q2.Using the Domestic Loanable funds market diagram, Explain what happens to Private savings,…

A: In the market of loanable funds, the price is considered to be the interest rate and the thing that…

Q: A DVC’s population is growing 2 percent per year and output is growing 3 percent per year. If the…

A: A DVC nation indicates the economy which is developing into a developed economy. The main factor or…

Q: Consider the loanable funds model we analyzed in class. If there is an expected increase in future…

A: The loanable assets model is a model that uses organic market to delineate how a financing still up…

Q: Complete the following statements. a. Dan saves a portion of his income in an interest-earning…

A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question.…