Find a quote below and illustrate the effect of these phenomena on the world market for loanable funds. Make sure to explain the change of the equilibrium price and quantity of loanable funds. “Many Economists worry that the aging populations of industrial countries are going to start running down their savings just when the investment appetite of emerging economies, mostly in East Asia, is growing”.

Q: It explains what is the relationship of the financial market with the economic growth of a country.

A: The well developed and swimmingly operated money market plays a significant necessary role within…

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: 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: Consider the following policy scenarios. Construct a diagram reflecting the policy and fully explain…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Discuss the argument that the financial system plays an important role in mitigating the volatility…

A: A financial system is the system of regional,global,  or firm-specific institutions and practices…

Q: Briefly explain and critically evaluate the role of public and private investment in Pakistan. Also…

A: In economics, investment is described as the value of stocks plus fixed capital assets that are…

Q: Explain the term capital in depth

A: Companies employ capital to fund the continuous production of goods and services in order to…

Q: Foreigners deposit more money in country A. Which of the following graphs correctly shows how the…

A: Explanation for question no. 1    The second graph correctly shows how the loanable funds market in…

Q: In an open economy, why is the supply of loanable funds upward sloping?   a) A higher real interest…

A: In the loanable funds market, the supply of these funds are made by the consumers or households of…

Q: (Figures in B$ 000) Agriculture 1,690 Fisheries 4,600 Manufacturing 3,850 Transportation 5,200…

A: Total loan =1690+4600+3850+5200+8200=23, 540

Q: if European banks lend this extra saving to businesses, which use the funds to build new factories,…

A: The economies around the globe operates with the motive of increasing their level of productivity,…

Q: The fictitious country of World Campustan is expected to have an average annual growth rate of GDP…

A: (1) According to Rule 70: The number of years to double = (70 / Annual growth rate) Note: If the…

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: Explain the following as effects of low policy rates to the growth of an economy: 1. It can cause…

A: 1.The policy rate is the key lending rate by the central bank in an economy. Thus, when the economy…

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: Q2 /Discuss why are international financial institutions important for growth economy around the…

A: When talking about international financial institutions, they include international monetary fund,…

Q: Consider the following data for country B, an open economy, for this year:   Y = $14 trillion…

A: Politicians and economists use a variety of approaches to evaluate a country's economic health. Some…

Q: The Central Bank of Iran increased its interest rates. How will an increase in interest rates affect…

A: Usually interest rates are increased to reduce the borrowing levels and offset inflation

Q: What effect will an increase in interest rates have on the quantity of loanable funds supplied?…

A: Note: Since you have posted multiple questions, we will provide the solution only to the first…

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.…

Q: What happens in the long run for a country that increases its saving rate? O Productivity increases…

A: A greater saving rate leads to a higher steady-state capital stock and production level. The…

Q: Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest…

A: The loanable funds market would result in the equilibrium between the demand and the supply for the…

Q: (a) U.S. (b) U.K. Interest rate Interest rate Supply 6% EA 4 Demand Quantity of loanable funds 4% 2…

A:

Q: Why is well-functioning financial system is a critical ingredient in achieving long-run growth? It…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: If a country experiences a substantial increase in Net Capital Inflow, how do you think the market…

A: The loanable funds concept is a market interest rate hypothesis in economics. The interest rate is…

Q: When using AD/AS analysis to illustrate changes within an economy, which of the following would NOT…

A: The macroeconomic equilibrium in an economy is determined by the aggregate demand and aggregate…

Q: If households increase savings in their bank accounts, therefore increasing investment spending. A.…

A: Savings represent supply of lonable funds and Investments represent demand for lonable funds.  At…

Q: Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest…

A: When a nation has more of exports/outflows than it has imports/inflows, then the nation is in a…

Q: Some data at first might seem puzzling: The share of GDP devoted to investment was similar for…

A: The growth aspects and measures of a country can be measured by the gross domestic product that…

Q: Use the following data to answer the question below. Malaysia data: The annual growth rate of…

A: Total factor productivity is a metric that compares the output of an industry or economy to the…

Q: Is Canadian economy doing well and is GDP growing? Explain it in economic terms as the inverse…

A: The increase in the value of a country's Gross Domestic Product (GDP) over a specific period,…

Q: It would seem that a higher Steady State level of Y/L (y*) and K/L (k*) is a good thing. We know…

A: High savings leads to higher steady state but rate of savings of 80% to 90% is not good is explained…

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

A: an economy where goods and services are exchanged with different nations absent of any guidelines or…

Q: Choose all true statements on the saving, investment and loanable funds market in a closed economy.…

A: In the loanable fund market, the interest rate and the quantity of lonable fund is determined by the…

Q: None

A: To analyze what happens in the loanable funds market in Middle Earth given the described scenario,…

Q: How does the emergence of a sharing economy impact the circular flow of income in a country?

A: The sharing economy here refers to the emergence of the external sector. When the economy opens up…

Q: The majority of the countries have saving rates that are below the golden rule level. Why is it…

A: The per capita capital is the ratio of total capital to output. It means the rise in output results…

Q: In general, foreign entities: a. are borrowers of domestic (U.S.) loanable funds.…

A: U.S. portfolio investments is bought by lenders due to the highly developed, liquid, and efficient…