Please answer the given four questions related to the market for loanable funds.

1. What effect will an increase in interest rates have on the quantity of loanable funds supplied?
a. Some lenders will offer more whereas others offer less.
b. There will be no change in quantity supplied.
c. Quantity supplied will decrease.
d. Quantity supplied will increase.

2. As interest rate decreases, what happens to the quantity of loanable funds demanded?
a. Some borrowers will demand more funds whereas others will demand less.
b. Quantity demanded will decrease.
c. Quantity demanded will increase.
d. There will be no change in quantity demanded.

3. Which of the terms acts as the "price" in the market for loanable funds?
a. interest rate
b. demand
c. capital
d. supply

4. If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act?
a. The business will proceed anyway, knowing that the return is only an estimate.
b. The business will not take out the loan.
c. The business will demand more funds to cover the shortfall.
d. The business will take out the loan.

Answers

Answer 1

Answer:

1. d. Quantity supplied will increase.

2. c. Quantity demanded will increase.

3. a. interest rate

4. b. The business will not take out the loan.

Explanation:

The interest rate (specifically the real interest rate) is the factor through which balance is achieved between quantity supplied and quantity demanded in the loanable funds market, and thus it acts as the "price" in this market. Producers of loanable funds (lending institutions) and consumers (borrowers) will adjust their quantities supplied and demanded, respectively, to the prevailing real interest rate in the market. At any given rate, an equilibrium quantity will be established.

As with a traditional supply and demand curve, as the interest rate decreases, the quantity of loanable funds demanded increases. At lower interest rates, more individuals will seek out loanable funds. The key consideration for any consumer in the loanable funds market is how likely he or she is to receive a rate of return equal to or greater than the interest rate. As the interest rate drops, the likelihood of earning a rate of return at least as high as the interest rate increases, and more individuals will request funds.

If a business is unable to secure a rate of return at least as high as the interest rate, it will not desire financing because the outcome would be an overall loss of money. When the rate of return is at least equal to the interest rate, a company will break even. If it is greater, they will make money from the venture. No business will take out a loan with an interest rate higher than the projected rate of return because this would likely put it farther into debt than before, with no net benefit. Businesses will only borrow when the rate of return is projected to be higher than the interest rate.

As the interest rate increases, the quantity supplied of loanable funds increases. Lenders have a higher incentive to supply funds because with a higher interest rate, a greater return on their investment is possible. However, this is no guarantee that lenders will, in fact, earn more, because as the interest rate increases, there is a corresponding decrease in the quantity of loanable funds demanded.


Related Questions

Define is peace building

Answers

Answer:

Peacebuilding is an activity that aims to resolve injustice in nonviolent ways and to transform the cultural and structural conditions that generate deadly or destructive conflict.

A government in which citizens make the decisions is a

Answers

Answer: Direct Democracy

Explanation: Direct democracy, which is also called pure democracy is a democracy in which the decisions are not taken by representatives. All decisions are voted on by the people.

it would be a democracy

Suppose that the U.S. concrete industry has developed an inexpensive way to make concrete both lighter and stronger. As a result, the full employment level of aggregate output has grown from level A to level B in the graph. Move the SRAS (short‑run aggregate supply), AD (aggregate demand), or LRAS (long‑run aggregate supply) curves to describe how this concrete technology innovation has affected the U.S. economy.

Answers

Answer:

*see image*

Explanation:

The full‑employment level of aggregate output has grown from level A to level B. As such, LRAS shifts to the right from level A to level B.

An advance in technology equates with an increase in productivity. As a result, it increases the economy's ability to produce goods and services. In this case, better concrete lowers the cost of buildings, roads, and sidewalks. Consequently, the long‑run aggregate‑supply curve shifts to the right. It may help to think about being able to produce more buildings for the same amount of money.

Since most people may not even notice a difference in the concrete, the aggregate demand stays constant (i.e., does not shift).

Question 5 of 10
The main purpose of the Health Insurance Marketplace is to help people:
A. assess their insurance risks.
B. increase their insurance deductibles.
C. find health insurance plans,
D. extend their health insurance coverage.

Answers

The main purpose of the Health Insurance Marketplace is to help people find health insurance plans.

What is the purpose of Health Insurance Marketplace?

It is a service that helps people shop for and enroll in health insurance matters that affect them.

The Health Insurance Marketplace is a resource where individuals, families, and small businesses can:

Compare health insurance plans for coverage and affordability.Get answers to questions about your health care insurance.Enroll in a health insurance plan that meets your needs.

Hence, the main purpose of the Health Insurance Marketplace is to help people find health insurance plans.

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Answer: find health insurance plans

Explanation: because

Which of these documents is created by each state? ASAP


Constitution

Declaration of Independence

Articles of Confederation

State of the Union

Answers

The documents created by each state is the Constitution as it contains all of the governing principles of the state.

The Constitution: as a guide for governance

A constitution by definition is an aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determines how such entity in discuss is to be governed.

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During the Constitutional Convention, small states did not want their representation based on
Which scenario is not guaranteed under the Articles of Confederation?

Answers

Answer:

a merchant

Explanation:

they can always use the same currency in Connecticut and Georgia

What is one way political parties shape public policy?​

Answers

Answer:

"Helping elected officials who belong to the party work together more effectively."

Explanation:

sorry found this, and ur questions been up awhile. sorry

The aggregate demand and aggregate supply (AD‑AS) model shown depicts a hypothetical situation where a recent increase in expected income increases AD. The current AD (post adjustment) is depicted by curve AD1.

Please show what will happen to this economy next (ceteris paribus). Adjust only one of the curves in one direction. The original AD curve cannot be shifted.

Answers

Answer:

*see image*

Explanation:

The correct answer in this question is to shift the short‑run aggregate supply (SRAS) curve to the left. The new SRAS curve should meet with the AD1 curve and the long‑run aggregate supply (LRAS) curve all at the same point. The SRAS curve should not shift to the left farther than that.

In this example, the increase in expected income increased aggregate demand. The key to this problem is understanding that at the original AD curve, the economy was already at a long‑run, full employment equilibrium. So, this increase in expected income has increased output above the full employment level. After increase in aggregate demand (AD), the AD curve has shifted rightward to AD1, increasing both aggregate output and price level in short run.

This higher output is only temporary. It comes with increased prices, so workers and suppliers adjust their expectations to the higher price level. This decreases short‑run aggregate supply and shifts the SRAS curve to the left. The economy readjusts at the same full employment level of output, but at a much higher level of prices. Higher price level increases the cost of inputs, therefore raising production cost which makes firms reduce production and output. As a result, aggregate supply falls, shifting SRAS curve leftward to SRAS1, intersecting AD1 at the original aggregate output (potential GDP), but at a further higher price level as shown below.

The short-run aggregate supply (SRAS) curve should be moved to the left as the answer to this query. The long-run aggregate supply (LRAS) curve and the new SRAS curve should intersect at the same position. Beyond that, the SRAS curve shouldn't go further to the left.

In this instance, the rise in anticipated income raised total demand. The solution to this issue lies in realizing that the economy was already at a long-run, full employment equilibrium at the time of the original AD curve. As a result, output has increased above the threshold of full employment due to this increase in projected income.

After a rise in aggregate demand, the AD curve shifted rightward to AD1, which in the short term increased aggregate output and price level.

What is Aggregate Supply?

The aggregate supply (AS) or domestic final supply in economics refers to the entire amount of products and services that organizations in a national economy hope to sell over a timeframe.

It is the overall value of goods and services that companies in an economy are willing and able to supply for sale at a certain price point.

What is Aggregate Demand?

The overall demand for final goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics.

Effective demand is a common name for it, however other times this term is used to make a distinction.

This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point. The aggregate demand is made up of investment, business and government expenditures, consumer spending, and net exports.

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Look at the Map below. Which area was considered the Northwest Territory

Answers

Answer:

3

Explanation:

The Northwest Territory was established by the US Congress in 1787

1 = Free state

2 = Slave states

3 = Northwest Territory

4 = Slave states

Hope this helps!

1. If you had to pick just one would you call yourself a boy, man, girl, woman, gender non-binary child or gender non-binary adult?



2. If you identified yourself as a boy, girl or gender non-binary child; when will you become a man, woman or gender non-binary adult?



Or

If you identified yourself as a man, woman or gender non-binary adult; when did you become a man, woman or gender non-binary adult?

Answers

Answer:

1 woman 2 just was destined to be 3 when I was born

By supporting with practical examples, how would you argue out with statement that, “perception in most cases are subjective, irrational and marred with errors”.

Answers

Perception in most cases is subjective, irrational, and marred with error. Examples to support the notion are given below:

Some individuals argue that atoms don't exist because they are not visibleSome argue that there is no God because He is not visibleSome argue that there is no carbon monoxide in a room and even if there is, it cannot be smelt.

What is Perception?

Perception is a careful organization, identification, and interpretation of information in order to understand the presented information. It is what an individual thinks or feels about a piece of information or something else.

Some perceptions can be filled with flaws and in most cases are subjective and irrational. Even though on the surface it might feel like its true but it is actually the opposite.

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A personality test can't be used to?

A. diagnose mental health conditions .

B. reflect on your own personality type.

C. measure your individual personality traits.

D. show you careers you may be interested in.

Answers

Answer:

A.

Explanation:

Personality tests can not be used to diagnose a mental health condition.

Mohandas Gandhi helped India win independence through __________.
a: fighting
b: communism
c: nonviolent protests
d: industrialization

Answers

Answer:

non- violent protests

Explanation:

gandhi ji come india and start satyagrah against British and he want to democratic country as india

How does the Constitution support separation of Church and State?

Answers

Answer:

The constitution wants the Church to be seperate from the state so the State does not control the church.

Today, the establishment clause prohibits all levels of government from either advancing or inhibiting religion. The establishment clause separates church from state, but not religion from politics or public life. Individual citizens are free to bring their religious convictions into the public arena.

what service does a financial institution offer to help you track your money?

Answers

Financial Institutions would offer credit cards and checking account services to track money

Answer:

Credit cards

Explanation:

Which phrase describes the ottman empire

Answers

Answer:

An Indian Islamic kingdom that was tolerant toward Hindus C.

Explanation:

What are some ways the different groups of primates communicate differently?

Answers

Answer:

Primates communicate via different sensory channels, including olfactory, tactile, visual and auditory signals. However, signals are often not differentiated based on their sensory modality, but are rather categorized based on the different cognitive mechanisms assumed to underlie their usage (Liebal et al., 2013b).

Explanation:

How youth could use social media to encourage their peers to become responsible citizens​

Answers

Answer:

Youth could use social media to encourage their peers to become responsible citizens by posting helpful tips or videos. Also, they could post how they are getting affected by these in a positive way.

what is the important factor in the eradication of the social problem? Write any one factor​

Answers

Answer:

9 and 6

Explanation:

9 and 6 is the important factor because you can multiple 9x6=54

Read the sentences from the text.
In a cotton mill in Georgia, boys and girls had
to climb onto a frame in order to reach and
replace empty bobbins. A bobbin is a kind of
reel for holding thread.
Which word from the sentences is a
homophone for a word that means “not
imagined or made up; actual”?
O A. mill
O B. frame
O C. empty
O D. reel

Answers

Answer:

The answer is reel Explanation: yes

most people know me for my writings about the struggles that arose between social classes and forme the basis of communism. my theories are also the basis of the social-conflict approach to sociological studies. who am i ?

Answers

Answer:

That's Karl Marx

Explanation:

The graph characterizes a market for loanable funds. Shift the appropriate curves to indicate what will happen to the market if there is an improvement in the technology firms use in production.

After this change,
a. the real interest rate increases and the quantity of loanable funds decreases.
b. the real interest rate decreases and the quantity of loanable funds increases.
c. the real interest rate increases and the quantity of loanable funds increases.
d. the real interest rate decreases and the quantity of loanable funds decreases.

Answers

Answer:

c. the real interest rate increases and the quantity of loanable funds increases.

Explanation:

If there is improvement in the technology firms use in production then they need money. So they borrow more, because of this borrowing the demand curve will shift right.

As the demand curve shifts right it is clearly visible that from y-axis the real interest rate increases as the equilibrium shifts right due to shift in demand curve. From x-axis it is clear that quantity of loanable funds increases.

In the market here, there is an improvement in the technology firms use in production. In response to this change, borrowers will want to borrow more money at all interest rates. Firms have a greater incentive to borrow money because doing so has become more profitable. The change here should be modeled as an increase in demand for loanable funds.

To determine the impact on the interest rate and equilibrium quantity of loanable funds, identify the new intersection of the supply and demand curves. An increase in demand for loanable funds causes both the real interest rate and the equilibrium of loanable funds to rise.

Please answer
Question 3 (1 point)
What can we learn about the Etowah people from the mounds they created?
they created a town center, a place for religious activities and burial grounds
they lived in Texas.
they still have the same town
they did not see European explorers

Answers

Answer:

They had a hierarchical social structure.

Explanation:

The flattened mound was used for the chief's house, meaning that the chief was elevated as somebody more important than the rest of the villagers.

Explain how speciation occurs and provide some examples

Answers

Answer:

The definition of speciation is the formation of new species throught the course of evolution. There are many different ways it can occur.

Geographic Isolation - Seperating two species, so that they are in different habitats. Over time these species get acquainted to heir habitats and start evolving to fit in it. Suppose there is a big lake where a species of fish lives, and the lake gets seperated. One side of the lake prefers dark fish and the other prefers lighter fish. On one side, dark fish becomes more prevalent and light fish becomes more prevalent on the ohter side. Soon, this species will split into two species, based on how different they are on the color of their scales.Temporal Isolation - This is when species mate a different times of the year. One example is if you have a bunch of frogs. Most of them mate in the summer. All of a sudden, some of them mate in the Spring as well. Soon these frogs mate a different times and become different species as they don't mate at the same time. The frogs that mate at differnt times can no longer, be the same species.Behavioral - This is when species have different mating calls or courthsips. Lets say you have birds that sing a specific tune to mate and then one day, another group fo birds in the same species sing a different tune. Soon, these two bird species will be different as they sing different tunes and can no longer mate with each other. If they can't mate with each other, they are no longer the same species.

How does human, natural, and capital resources help the home and community run smoothly​

Answers

Answer:

Human resources: Refer to the human effort needed for the production of goods and services, and societies and economies need human resources to advance. These resources often include skilled and unskilled labor. Entrepreneurial and management skills are also human resources and refer to the ability to start and run economic activities.

Natural resources: Are elements and materials that have formed without any human action. They exist in nature, and people might take them and use them in their natural form or as raw materials for producing all types of objects. These resources can be renewable, like water, sunlight, wind and trees, or non-renewable, like fossil fuels, gold, iron, clay and other minerals. Capital resources: Include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services

Explanation:

Human capital and economic growth have a strong correlation. Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people.

Human capital refers to the knowledge, skill sets, and experience that workers have in an economy. The skills provide economic value since a knowledgeable workforce can lead to increased productivity. The concept of human capital is the realization that not everyone has the same skill sets or knowledge. Also, the quality of work can be improved by investing in people's education.

What Drives Economic Growth

Economic growth is an increase in an economy's ability, compared to past periods, to produce goods and services. Economic growth is measured by the change in the gross domestic product (GDP) of a country. GDP is a representation of the total output of goods and services for an economy.


The doctrine that holds the view that historical circumstances are determined by a sequence of economic events
connected to the act of production is known as ............
O A. Economic determinism
O B. Historical materialism
11 a 0
O C. Rationalization
O D. Economic materialism

Answers

B historical materialism

The short-run macroeconomic model is very similar to the standard model for markets. In what ways are these two models similar?

Answers

Answer:

Explanation:

Slope of demand curve is negative and slope of supply curve is positive in both the models.

But labeling of axis is different in both the models. In the short-run macroeconomic model, y-axis represents the price level whereas x-axis represents the GDP.

While in the standard model for markets, y-axis shows the general price level whereas x-axis represents the output level.

What is the primary responsibility of congressional committees?

Answers

Answer:

Committees monitor on-going governmental operations, identify issues suitable for legislative review, gather and evaluate information, and recommend courses of action to the Senate.

Explanation:

there ya go

All the planets in our solar system have more or less the same–

Answers

Answer:

As Morbidelli notes, most planetary scientists agree that the planets in our solar system had similar origins as small rocks orbiting the sun, comprising the protoplanetary disk, which collided and fused, creating increasingly larger rocks that eventually became protoplanets.

Explanation:

Answer:

except for pluto

Explanation:

In 2006 pluto was named a dwarf planet and is now forced to sit at the kids table during planet thanksgiving

How would you define Jefferson's idea of government?​

Answers

Answer:

A strict constructionist

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