Other things the same, an increase in the budget deficit   A. shifts the supply of loanable funds left, so the interest rate rises.   B. shifts the demand for loanable funds right, so the interest rate rises.   C. shifts the demand for loanable funds left, so the interest rate falls.       D. shifts the supply of loanable funds right, so the interest rate falls.

If and when the demand of loanable funds shifts to the left:

Suppose the government ran a budget surplus in 2018 and a larger surplus in 2019. The loanable funds model would predict that, as a result of the increase in the surplus, A. both the government debt and interest rates increased between 2018 and 2019. B. the government debt decreased and interest rates increased between 2018 and 2019. both the government debt and interest rates decreased between 2018 and 2019. C. D. the government debt increased and interest rates decreased between 2018 and 2019.

The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300 billion per year for investment and consumers borrow $50 billion per year to finance purchases. The government is currently borrowing $150 billion per year to cover its budget deficit.  a. Derive the market demand for loanable funds, and show how investors and consumers will be affected if the budget deficit increases to $250 billion per year. b. Assuming taxpayers do not anticipate an increase in the future market rate of interest due to the increase in budget deficit, show the impact of the increase in the budget deficit on the market for loanable funds. c. How would your conclusion differ if taxpayers fully anticipate future tax increases to offset the increase in the budget deficit? d. Do you think the Ricardian Equivalence is realistic?

1. During the late 1980s and early 1990s, most of the budget deficits were accounted for by   a. the decline of foreign investment in the United States.   b. the downturn in the economy.   c. deliberate fiscal policy changes.   d. All of the above are correct.   2.Debt is to deficit as   a. money is to income.   b. rent is to dividend.   c. flow is to stock.   d. property is to wealth.   3. A chart of the ratio of national debt to GDP from 1915 to 2014 would show   a. significant decreases from 2003 to 2010.   b. significant increases from 1983 to 1994.   c. sharp increases from 1945 to 1975.   d. a continuous decline.   4. A chart of the ratio of national debt to GDP from 1915 to 2014 would show   a. significant increases during World Wars I and II.   b. significant increases from 1945 to 1975.   c. significant increases from 1995 to 2003.   d. a larger value in 1975 compared to 1945.   5. In 2009, the…

1. What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why this change happens

1) Using a graph representing the market for loanable funds, show and explain what happens to interest rates and investment if: a reduction in military spending moves the government’s budget from deficit into surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Patrick wants to start his own dental practice, but his expenditures exceed his income. Which statement best describes Patrick? a. He is a saver who demands loanable finds from the financial system. b. He is a saver who supplies loariable funds to the financial system c. He is a borrower who demands loanable funds from the financial system. d. He is a borrower who supplies loanable funds to the financial system