When an individual deposits her paycheck in her account at First National Bank, she is essentially:   Multiple Choice   lending money to borrowers in the loanable funds market.   buying goods in the goods and services market.   borrowing money in the loanable funds market.   saving money in the goods and services market.

Use the chart to answer the following question. Loan 1 Loan 2 Loan 3 Loan 4 Interest Rate Amount 3% 4% 5% 6%

Exercise #1: Write two paragraphs on the impact of borrower liquidity (think, cash like assets and income) vs. equity (think, property value). These issues can be measured at loan origination, and also can and do change over the life of the loan. They are effected by macro-economic factors, like the local or general health of the economy and by personal factors like death, divorce, lost of employment, and over spending/poor financial management.

Manipulate the graph to show what will happen to supply and demand in the market for loanable funds when the government budget deficit increases, changing the equilibrium quantity of loanable funds by 3 percentage points. Ceteris paribus, what is the new interest rate? interest rate: 6 Ceteris paribus, private investment would decrease. not change. increase. % Interest rate (%) 10 9 8 7 6 4 3 2 1 0 0 Supply 6 Demand 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Quantity of loanable funds (% of GDP)

Collaboration with Congress during the Clinton administration allowed for an aggressive deficit‑cutting plan to pass. At the end of the 1990s, Congress eliminated the government deficit. Manipulate the graph to illustrate how the elimination of the deficit affects the loanable funds market. 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.

What impact will increases in income have on the Market for Loanable Funds? A) Decrease Supply B) Decrease Demand C) Increase Demand D) Increase Supply