The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth , if there is an increase in the budget deficit.

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Answer 1

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Chapter 13, Problem 8P

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The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

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Name and explain on the example of your interest one factor that caused the shift of the supply for loanable funds? Draw the curve that supports it.

Draw a graph of the supply and demand of loanable funds. Then, show how the interest rate will be affected when the following scenarios occur: a. The government implements a program that reduces investment tax credits. b. The government budget deficit is reduced by 30%. (Hint: Does the government still need to borrow?) c. More foreigners are saving their money in U.S. banks.

Usually, when the supply of loanable funds increases, then interest rates Select one: a. Might increase or decrease. b. Increase. c. Remain unchanged. d. Decrease.

Answer 2

Question

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

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Answer 3

Question

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

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Answer 4

Question

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

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Answer 5

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

Answer 6

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

Answer 7

Chapter 13, Problem 8P

To determine

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 13 - Prob. 1P Ch. 13 - Prob. 2P Ch. 13 - Prob. 3P Ch. 13 - Prob. 4P Ch. 13 - Prob. 5P Ch. 13 - Prob. 6P Ch. 13 - Prob. 7P Ch. 13 - Prob. 8P Ch. 13 - Prob. 9P Ch. 13 - Prob. 10P

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth , if there is an increase in the budget deficit.

Solution Summary: The author explains the effects of an increase in the budget deficit on the equilibrium interest rate, loanable fund supply curve, and economic growth.

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

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Chapter 13 Solutions

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth , if there is an increase in the budget deficit.

Solution Summary: The author explains the effects of an increase in the budget deficit on the equilibrium interest rate, loanable fund supply curve, and economic growth.

To explain: The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.

Want to see the full answer?

Chapter 13 Solutions

To explain:

The change in the equilibrium interest rate, loanable fund's supply curve, level of loanable funds in the economy and the rate of economic growth, if there is an increase in the budget deficit.