Classify each of the given events according to the category that best describes how it affects the equilibrium interest rate in the market for loanable funds.

Increases the interest rate
Decreases the interest rate

An investment tax credit
An increase in large investments
An decrease in investor optimism
An increase in savings

Answers

Answer 1

Answer:

Increases the interest rate:
    - An investment tax credit
    - An increase in large investments

Decreases the interest rate:
    - A decrease in investor optimism
    - An increase in savings

Explanation:

Changes in investments affect the demand to borrow. In particular, an increase of large investments shifts the demand to borrow curve to the right. As a result, the equilibrium interest rate will be higher.

An investment tax credit will also shift the demand curve to the right and increase the equilibrium interest rate.

A decrease in investor optimism will decrease the demand to borrow. This will shift the demand curve to the left and decrease the equilibrium interest rate.

An increase in savings affects the supply of savings by shifting the supply of savings to the right. As a result, the equilibrium interest rate will decrease.


Related Questions

PLS ANSWER ALL, THANK YOU!
In the blank at the left, write the letter of the choice that best completes the statement or answers
the question.
7 Points
___ 1. To avoid the concentration of power, the states divided government functions between the
_?_.
A. people and the governor
B. people and legislature
C. governor and the president
D. governor and the legislature
Continue on next page.
___ 2. Under most state constitutions, which government branch was most powerful?
A. the judicial branch
B. the legislative branch
C. the executive branch
D. none
___ 3. Which of these functions could the national government not perform under the Articles of
Confederation?
A. conduct foreign affairs
B. impose taxes
C. maintain armed forces
D. issue currency
___ 4. How many states had to approve the Articles of Confederation?
A. 13
B. 9
C. 11
D. 10
___ 5. What area did the ordinance passed in 1787 create?
A. Mississippi River valley
B. Appalachia
C. Northwest Territory
D. Ohio River valley
___ 6. When could a territory apply for statehood?
A. when it abolished slavery
B. when it elected a governor
C. when it wrote a constitution
D. when its population reached 60,000
___ 7. How did Robert Morris propose to pay off the national debt left over from fighting the
Revolutionary War?
A. 5 percent state sales tax
B. 5 percent import tax
C. 5 percent national income tax
D. 10 percent inflation tax

Answers

Answer:
1.D.
2.C.
3.C.
4.D.
5.D.
6.B.
7.C.
Explanation:
please mark me as the brainiest

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.

If Northland has a debt of $5 million in 2014, and runs a deficit of $0.3 million in 2015, and a surplus of $0.4 million in 2016, what would its debt be at the end of 2016, assuming no additional interest is added to its debt?

$5.3 million

$4.9 million

$5.7 million

$4.3 million

Answers

$4.9 million

A $0.3 million deficit in 2015 has increased the debt from $5 to $5.3 million, and a $0.4 million surplus in 2016 has reduced the debt from $5.3 million down to $4.9 million at the end of the year.

Adjust the graph to show the effect of a decrease in the aggregate price level.

Which of the statements offers the best explanation for the change demonstrated in the graph?
a. Prices of goods and services decrease on average.
b. The prices of a few goods in the market dropped substantially.
c. Consumers purchase less of one product, like cars, and more of another, like clothing.
d. The law of demand dictates the behavior of the aggregate demand curve.

Answers

Answer:

a. Prices of goods and services decrease on average.

Explanation:

Since the aggregate demand curve shows the relationship between the aggregate price level and real GDP, a reduction in the aggregate price level is represented by a movement along the aggregate demand curve. The aggregate price level is a weighted average of the prices of all of the goods in the economy.

If only the prices of a few goods fall, it is not likely to affect the aggregate price level. The law of demand does not concern the aggregate demand curve but the relationship between the price level and the various components of aggregate demand. If consumers purchase more of one product and less of another, then the overall price level will be unaffected.

what is the difference between myth and truth?​

Answers

A myth refers to something that can be made up and along the way someone could have really believed it so it became more and more ‘real’ but in reality isn’t. Truth is the truth. In other words it’s something that CAN be proven in anyway. Myth cannot.

Which of the following was a Roman contribution to art? (1 point)

a
marble sculpture

b
oil painting

c
portrait painting

d
mosaics

Answers

Answer:

A: A marble sculpture!!!

Explanation:

I hope this helps you! :)

Answer:

D) mosaics

Explanation:

And this is the right answer.

The first person is wrong.

And I do the pretest right now.

I hope have a nice day :)

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. 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.

Though accurate, it is inconvenient and impractical to follow local time in a place .Write clearly to prove the claim.​

Answers

Answer:

Because the Earth rotates at an uneven speed, solar days vary slightly in size. This indicates that the pace of true solar time is not constant. Mean solar time is calculated based on the 24 hour length of a mean solar day. It moves at a constant speed. It would be a disadvantage to follow

define and explain trade​

Answers

Trade is a basic concept involving both buying and selling of goods and services. Trade helps people to buy item or sell any product.

Definition: Trade is an Exchange, explanation: Trade is when one person has something and the other person has something as well and the other person1 gives person2 his thing.

What is one way that American citizens can defend the United States from national security threats?
A.
participating in jury duty
B.
voting in elections
C.
joining the armed forces
D.
keeping current on issues

Answers

I’d probably go with C. I don’t really know it but I hope I at least helped.

What we expect to see can play a bigger role when we form beliefs than what we actually see. True or false?

Answers

Answer:

true

If u believe in God

u won't Ever wonder how He created the universe

One of the key underpinnings of public choice analysis is the assumption that politicians and bureaucrats

make political decisions based on self‑interest, just as individuals and firms do.

make political decisions based primarily on benefiting future generations.

seek only to maximize long term economic growth through increasing GDP.

act not out of self‑interest but desire to increase the general utility of the public.

Answers

Answer:

a. make political decisions based on self‑interest, just as individuals and firms do.

Explanation:

Public choice analysis is the combination of political science and economics and analyzes political decision making. One key assumption of public choice theory is that politicians are rational, self‑interested, economic agents. Like all other economic agents, they make decisions based on their own self‑interest (specifically, to satisfy constituents and retain their positions). It leads to rise of interest groups, logrolling and rent seeking behavior from the politicians and bureaucrats which leads to inefficiency.

Real GDP per capita is NOT an adequate measure of

average real GDP per person in the economy.

the well-being of each person in an economy.

a country's average aggregate spending per person.

a country's average aggregate output per person.

Answers

Answer:

the well-being of each person in an economy.

Explanation:

Real GDP per capita is average real GDP per person in the economy. It can be found by dividing real GDP by population. It is a measure of the economy's aggregate output per person which is also a measure of aggregate spending per person.

Richer nations with higher real GDP per capita are typically happier than poorer nations. However, real GDP per capita is a poor measure of the overall well-being of individuals in an economy because real GDP per capita does not measure the many dimensions related to how people live, but rather how much, on average, individuals in a country produce and consume.

Real GDP per capita measures the average level of a country's income, adjusted for inflation. Since, It tracks the average real GDP per person in the economy, option (a) is not valid. Real GDP per capita can also be used as a rough estimate of a country's average aggregate output per person as well as the average spending capacity per person of a country. Therefore, options (c) and (d) are not correct either. The emotional or general well-being of a country's populace is not accounted for in the data used to calculate the Real GDP per capita of a country.

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

Question 1 (1 point)
What is nationalism? (2 poin

Answers

Answer:

Nationalism is an idea and movement that holds that the nation should be congruent with the state. As a movement, nationalism tends to promote the interests of a particular nation, especially with the aim of gaining and maintaining the nation's sovereignty over its homeland to create a nation state.

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True or False: The Bible provides truth in theological and spiritual areas, but not in scientific and historical areas.

Answers

Answer:

True

Explanation:

This is true because it is not a scholarly source, as more people would think it is a primary source.

the purpose of law of education​

Answers

Education law is the legal discipline covering all issues pertaining to schools, from kindergarten through higher education. Historically, attorneys practicing education law have worked toward expanding access to a high-quality education for all children, as well as providing for greater access to higher education. But this practice area has expanded to include issues such as students' rights; teachers' rights; school safety; discrimination; conduct and discipline; special education; curriculum; and education options such as homeschooling and charter schools.

Heyyy Guyssss !!

What are the advantages of industry ?​

Answers

Better use of resources.
Faster manufacturing.
Less machine and production line downtime.
Fewer quality issues with products.

Explanation:

Growth of industries leads to increase in production of goods and services which are available to people at cheaper rates.It reduces dependence on other countries and improves economy.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It creates new job opportunities helping in the removal of unemployment.

Suppose that because of globally adverse meteorological conditions, there are serious concerns of climbing prices in an extensive group of commodities. As a result, people now expect an acute increase in the level of input prices. The figure shows aggregate demand (AD), short‑run aggregate supply (SRAS), and long‑run aggregate supply (LRAS). Move one or more of these curves to describe the short‑run effect this would have in the economy and answer the two questions.

*graph goes here*

In the short run, price level
a. decreases.
b. The change is indeterminate.
c. increases.

2. In the short run, real GDP (or aggregate output)
a. increases.
b. The change is indeterminate.
c. decreases.

Answers

Answer:

From the graph above it can be observed that, in the short run price level increases and real GDP decreases.

Explanation:

Input prices are expected to be high and firms' costs are expected to increase. Thus, for any given actual price level, this reduces the quantity of goods and services that firms will supply, which means the short‑run aggregate supply curve shifts to the left (changes in expectations of prices shift the SRAS). This causes the price level to increase and real GDP to decrease.

The increase in expectation of input prices does not change the economy's level of technology or overall productivity. Because of this, an increase in the input price does not change the long‑run aggregate supply. The LRAS curve indicates the amount of goods that the economy could produce if the economy was at full employment.

Likewise, an increase in expectation of input prices does not affect the overall level of demand, so aggregate demand does not shift. Changes in consumption, investment, government spending, and net exports, or C, I, G, and NX, affect AD.

Reading the graph shows that the price level increases and real GDP decreases in the short run. However, this results in higher unemployment, reducing input costs. So in the long run, this causes SRAS to shift back to the right, according to this AD/AS model.

"prevention is better than cure"Justify the statement.in long ​

Answers

Prevention is better than cure because it saves us from the harm of curing through medicines. Prevention is a safe way to remain away from any problem. We just need to maintain a healthy and disciplined lifestyle all through life. Whereas, our carelessness lead us to cure using medicines or other treatments. Cure cannot cure us completely however prevention keeps us away from danger and maintains normal health.

Investors face various choices regarding what they can invest in, and the choices carry varying amounts of risk. For example, stock prices are much more volatile than bond prices.

What is the typical reason why investors would choose to put their money into an investment with higher risk rather than one with lower risk?
- They want to signal their courage to other investors and scare them away.
- Assuming enough risk in a portfolio qualifies investors for a large government tax credit.
- Riskier investments typically have higher returns.
- Riskier investments are insured by the FDIC.
- They are irrational or are thrill‑seekers.

Answers

Answer:

Riskier investments typically have higher returns.

Explanation:

Although investors choose investments for many different reasons, most investors are seeking to earn a return. Ideally, they would like to earn a high return while exposing themselves to little risk, but what typically happens is that companies offering investments with higher risk know that they have to compensate investors for assuming that risk, or else they will not attract sufficient investment. Thus, higher‑risk investments typically offer a higher return, whereas companies offering lower‑risk investments know that they can offer a lower return and still attact investment. For example, a small company in a competitive, fast‑changing industry will typically offer to pay a higher interest rate for its corporate bonds than a large company in a stable industry.

Also, advertising using risque outfits seem to be more aimed at consumers than investors. Advertising for investors is typically rather boring, featuring graphs and numbers. Of course, one may find that the most interesting models of all are economic models. According to the risk-return tradeoff theory, higher risk is associated with greater probability of higher return and lower risk associated with a greater probability of lower return. The trade-off which the investor faces between risk and return while considering investment decision is called risk return trade-off.

. _____________________ waves are used to send signals because they can travel over very long distances and pass through buildings

Answers

Answer:

the answer is electromagnet

Explanation:

Answer:

__________ waves are used to send signals because they can travel over very long distances and pass through buildings.

Explanation:

Radio is your answer.

radio waves are used to send signals because they can travel over very long distances and pass through buildings.

business plan for bakery

Answers

[tex] \mathbb\blue{Refer\:to\:attachments\:for\:sample}[/tex]

[tex]\mathbb\blue{of\:a\:bakery\:business\:plan} [/tex]

Complete the sentences with the correct term.

Cost‑push inflation occurs when ____(short-run aggregate supply / aggregate demand)____ decreases until equilibrium output falls below the full employment level.
As a result, the ____(equilibrium output level / price level)_____ increases.
One possible cause of cost‑push inflation is an increase in ____(technology / the costs of inputs)_____.
To combat falling aggregate output, the government may introduce policies to increase ____(aggregate demand / long-run aggregate supply)_____ to the point where it and short‑run aggregate supply intersect ____(aggregate demand /
long-run aggregate supply)_____ at the same point.
These policies cause ____(the price level / equilibrium output)____ to return to its full employment level, and the ____(level of output / price level)_____ increases even further.

Answers

Answer:

Cost-push inflation occurs when short run aggregate supply decreases until equilibrium output falls below the employment level.

As a result, price level increases.

One possible cause of cost-push inflation is an increase in the cost of inputs.

To combat falling aggregate output, the government may introduce policies to increase in aggregate demand to the point where it and short-run aggregate supply intersect long run aggregate supply at the same point.

These policies cause equilibrium output to return to its full employment level, and the price level increases even further.

Explanation:

Cost‑push inflation is caused by a decrease in short‑run aggregate supply (SRAS) that results in an equilibrium below an economy's full employment level of aggregate output. This can be caused by a substantial increase in the cost of inputs, such as oil or wages, giving rise to an increase in the cost of production.

Initially, the economy will reach an equilibrium where the new SRAS curve intersects the aggregate demand curve. At this equilibrium, the aggregate output has decreased and the price level has increased.

Since the economy is now operating below full employment output, the government may get involved by creating policies to increase aggregate demand, so that the equilibrium returns to the full employment level of output. At this new equilibrium, aggregate output returns to the economy's full employment level, but the aggregate price level has increased further.

Mao Zedong wanted to make China ___________.

a: a democracy
b: a communist nation
c: a colony of Great Britain
d: very poor

Answers

The answer is b: a communist nation

features of capital budget .At least 5 points​

Answers

Answer:

Big Investments Irreversible Decision MakingHigh Risk Impacts the structure costAffects Your Future Competitiveness

Why fundamental attribution error is important?

Answers

Answer: Understanding the fundamental attribution error is important because research shows that everyday human behavior is heavily influenced by external factors, yet when evaluating others' behavior, you may wrongly perceive their actions as stemming from internal factors

Explanation: Fundamental attribution error breaks collaboration, renders communication ineffective and can even make people leave the organisation. It can cost someone their job.

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.

Read more on Constitution;

https://brainly.com/question/87691

how technology and social media platforms influenced self-disclosure in your relationships

Answers

Individuals can self-disclose on social media by posting personal content in posts or by revealing information on their personal profiles. While posting is a common activity, updating one's profile is not.

what are the advantages of sheep and goat farming​

Answers

Hi!the advantages of sheep and goat farming is that Sheep and goats make very effective use of a variety of different grazing lands, including rocky mountain terrain and alpine pastures, which cannot be utilized by other domestic animals. They convert relatively inaccessible low quality forage to high quality meat, wool and fibre.

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