Balance the supply and demand for loanable funds

Assignment Help Microeconomics
Reference no: EM13698327

In the long run the interest rate adjusts to adjusts to balance the supply and demand for loanable funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.

Reference no: EM13698327

Questions Cloud

Common sense understandings and social psychological theory : 1.Explain two major differences between common sense understandings and social psychological theories. Illustrate with an example. What is the danger in relying on common sense or intuition in learning about the relationship between the individ..
Develop into a negative self-fulfilling prophecy : Keeping the concept of the self-fulfilling prophecy in mind, give an example of : An expectation that can develop into a positive self-fulfilling prophecy. An expectation that can develop into a negative self-fulfilling prophecy.
Domestic investment and net capital outflow : Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national savings increase? Show the relationship between China’s national savings, domestic inves..
Define the term standard deviation : Define the term standard deviation. Why is it important to know the standard deviation for a given sample? What do researchers learn about a normal distribution from knowledge of the standard deviation? A sample of n=20 has a mean of M = 40. If..
Balance the supply and demand for loanable funds : In the long run the interest rate adjusts to adjusts to balance the supply and demand for loanable funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.
What role does expected price level play in the adjustment : Use the sticky wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does expected price level play in the adjustment?
Under a situation of majority voting : How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?
How many brands of wheat beer were rated : Review the SPSS output file ("Module 2 SPSS Output") for various ways of summarizing information for discrete (nominal and ordinal variables) and for continuous (interval and ratio) variables. Answer the following questions based on your observ..
Amount of equal annual end-of-year payments for each of year : An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of three years,..

Reviews

Write a Review

Microeconomics Questions & Answers

  In 2012 a baseball player signed a contract reported to be

in 2012 a baseball player signed a contract reported to be worth 89.8 million. the contract was to be paid as 13.2

  You are the manager of a small pharmaceutical company that

you are the manager of a small pharmaceutical company that received a patent on a new drug three years ago patents in

  A monopoly has demand given through p20000-25q and costs

a monopoly has demand given through p20000-25q and costs given through cq100q25q2. determine the profit maximizing

  Explain person with a diminishing marginal utility of income

Can be expressed as the ratio of (marginal utility per unit of thegood)/(price per unit of the good) being equalized across all goods. Can be expressed as the ratio of marginal utilities being equatedto the ratio of prices for all possible pairs of ..

  1 aggregate expenditure what are the components of

1. aggregate expenditure what are the components of aggregate expenditure? in the model developed in this chapter which

  17 assume a certain firm in a competitive market is

17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

  Describe healthcare transactions that have not taken place

Describe some healthcare situations in which an agent has taken advantage of a principal. Now describe some healthcare transactions that have not taken place because of fears about asymmetric information. What are some strategies for reducing adve..

  In what respects are the following common practices subtle

complete this essay in a microsoft word document with a minimum of 250 words apa formattedin what respects are the

  Define the number of baskets of apples

Define the number of baskets of apples and bananas produced as QA

  Investments of a smart business

The bank is willing to lend the business this money at a 10 percent interest rate over an eight-year term.calculate the monthly payment, and explain what the business must be able to do with this money.

  Find out which factors drive consumer demand for insurance

write the eight to ten 8-10 page paper that addresses the following1. explain the relationship between risk and

  Government in the economyais there benefit for government

government in the economya.is there benefit for government involvement in the microeconomy? if so what is it? if not

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd