Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 30, Problem 4DQ
To determine
Shift in the demand curve.
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4. Other things equal, what effect will each
of the following changes independently
have on the equilibrium level of real
GDP in a private closed economy?
LO11.5
a. A decline in the real interest rate.
b. An overall decrease in the expected
rate of return on investment.
c. A sizable, sustained increase in stock
prices.
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:
Ceteris paribus, private investment would
increase.
not change.
decrease.
%
20
10
9
Supply
8
Interest rate (%)
7
CO
5
LO
3
2
1
0
0
2
Demand
4 6 8 10 12 14 16 18 20 22 24 26 28
Quantity of loanable funds (% of GDP)
According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment?
O. 1971
O. 1972
O. 1973
O. 1974
O. 1975
Chapter 30 Solutions
Economics (Irwin Economics)
Ch. 30.2 - Prob. 1QQCh. 30.2 - Prob. 2QQCh. 30.2 - Prob. 3QQCh. 30.2 - Prob. 4QQCh. 30.5 - Prob. 1QQCh. 30.5 - Prob. 2QQCh. 30.5 - Prob. 3QQCh. 30.5 - Prob. 4QQCh. 30 - Prob. 1DQCh. 30 - Prob. 2DQ
Ch. 30 - Prob. 3DQCh. 30 - Prob. 4DQCh. 30 - Prob. 5DQCh. 30 - Prob. 6DQCh. 30 - Prob. 7DQCh. 30 - Prob. 8DQCh. 30 - Prob. 9DQCh. 30 - Prob. 1RQCh. 30 - Prob. 2RQCh. 30 - Prob. 3RQCh. 30 - Prob. 4RQCh. 30 - Prob. 5RQCh. 30 - Prob. 6RQCh. 30 - Prob. 7RQCh. 30 - Prob. 8RQCh. 30 - Prob. 9RQCh. 30 - Prob. 1PCh. 30 - Prob. 2PCh. 30 - Prob. 3PCh. 30 - Prob. 4PCh. 30 - Prob. 5PCh. 30 - Prob. 6PCh. 30 - Prob. 7PCh. 30 - Prob. 8PCh. 30 - Prob. 9PCh. 30 - Prob. 10P
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