The table sets out the data for an economy when the government's budget is balanced. Real interest rate Loanable funds demanded Loanable funds supplied (billions of 2012 dollars) (percent per year) 4567890 10 6.5 6.0 5.5 5.0 4.5 4.0 3.5 4.5 5.0 5.5 6.0 6.5 7.0 7.5
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- The table below shows Demand and Supply for loanable fund at given time. Real interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund supplied (billion $) 0.01 1000 400 0.02 950 450 0.03 900 500 0.04 850 550 0.05 800 600 0.06 750 650 0.07 700 700 0.08 650 750 0.09 600 800 0.10 550 850 0.11 500 900 0.12 450 950 0.13 400 1000 0.14 350 1050 0.15 300 1100 Instructions: Using excel, find the equilibrium real interest rate and quantity of loanable fund. show the equilibrium on a graph. If this country experiences a recession business cycle phase that decreases the demand for loanable fund by $200 billion. Find the new equilibrium real interest rate and quantity of loanable fund. Show the shift on the graph. list Two factors that shift SLF rightward and two factors that shift DLF rightward What is the meaning of crowding out?…Given demand and supply for loanable fund Market at given time period in the table below Quantity of loanable fund demanded (billion $) Real Quantity of loanable fund supplied (billion $) interest rate 0.5 400 120 0.75 380 140 1 360 160 180 1.25 340 1.5 320 20 1.75 300 220 280 240 2.25 260 260 2.5 240 280 2.75 220 300 3 200 320 3.25 180 340 3.5 160 360 3.75 140 380 4 120 400 Instructions: 1. Using excel, find the equilibrium real interest rate and quantity of loanable fund, show the point on the graph. 2. If this country experiences an expansion business cycle phase that increases the demand for loanab fund by $40 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. 3. Starting from the original equilibrium If there is a decreases in aggregate income that decreases supply for loanable fund by $20 billion. a) Find the new equilibrium real interest rate and quantity of loanable fund. b) Show the shift on the graph. (Loanable fund graph- show the result of a fiscal, crowding out and the effect on the supply of loanable funds
- What is the effect of an increase in the tax rate on interest income on the supply of and the demand of loanable funds 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.An increase in interest rate would lead to a _____ it's supply of loanable funds a. No effect b. None c. Increase d. Decrease #### Correct answer //////When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases increases; decreases increases; increases decreases; decreases and the quantity
- QUESTION 1 Muhammad takes out a loan of $ 4,324, at 8% simple interest, for 9 years. How much will he pay back at the end of year 9? QUESTION 2 Calculate the amount of interest on an investment of AED 149,956 at 8% simple interest for 7 years.What is the effect of continuous increase in savings on loanable funds market?The table given below shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. Real Interest rate (% per year) Loanable fund demanded Loanable fund supplied (Trillian of 2002 $) (Trillian of 2002 $) 8.5 5.5 8.0 6.0 75 6.5 7.0 7.0 6.5 7.0 9. 6.0 8.0 10 5.5 8.5 a. If the government has a budget surplus of $1 trillion, what are the real interest rate, the quantity of investment, and the quantity of private saving? Is there any crowding out in this situation? b. If the government has a budget deficit of $1 trillion, what are the real interest rate, the quantity of investment, and the quantity of private saving? is there any crowding out in this situation? c. If the government has a budget deficit of $1 trillion and the Ricardo-Barro effect occurs, what are the real interest rate and the quantity of investment?
- 17. What makes up the supply curve in the loanable funds market? Why does this curve have a positive relationship with the real interest rate?Textbook: Macroeconomics by P. Krugman & R. Wells (5th Edition) Using the accompanying diagram, explain what will happen to the market for loanable funds when there is a fall of percentage points in the expected future inflation rate. How will the change in the expected future inflation rate affect the equilibrium quantity of loanable funds?Lista the factors that affect the supply side of the loanable funds market. which factors shifts the curve?