Essay
Explain how each of the following events affect the supply of loanable funds curve:
a) The economy is in a recession so people's disposable income is lower.
b) The stock market is booming so the people's wealth is higher.
c) Fewer college graduates are finding jobs so expected future income is lower.
d) The real interest rate increases.
Correct Answer:
Verified
a) Disposable income is lower, so saving...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q69: Suppose a firm has an investment project
Q70: In 2007, France's GDP totaled $1.9 trillion
Q71: How does expected future income affect saving
Q72: There is a positive relationship between the
Q73: If foreigners spend more on U.S.-made goods
Q75: The demand for loanable funds curve is<br>A)
Q76: According to the Ricardo-Barro effect<br>A) government deficits
Q77: The table below shows data for the
Q78: Which of the following influences household saving?<br>I.
Q79: A share of Apple stock has a