Calculate the new equilibrium interest rate and quantity

Reference no: EM131206027

Table 4.6 shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense.

Interest Rate	Qs	Qd
5%	130	170
6%	135	150
7%	140	140
8%	145	135
9%	150	125
10%	155	110

Reference no: EM131206027

Questions Cloud

Analyze the role the professional licensing group plays : Analyze and comment on the role this professional licensing group plays in the creation of policy within the profession as well as the impact those policies potentially have on the economics of health services.

Firm commitment underwriting : In your own words explain the differences between a Firm Commitment Underwriting and a Best Efforts Underwriting Please explain in your own words what a Firm Commitment Underwriting is.

Grow at long-term growth rate : Calculate the per share value in early 2015 assuming that residual earnings will grow at long-term growth rate of 4%, the average GDP growth rate, after 2016.

Write the equations for the current ic : Determine vC after one, three, and five time constants. - Write the equations for the current iC and the voltage vR.

Calculate the new equilibrium interest rate and quantity : Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense.

Research paper surveying a popular algorithm : This assignment consists of writing a research paper surveying a popular algorithm. Your paper must conform to the American Psychological Association (APA) writing style. Your paper must use reputable scholarly references

Calculate the apr which mr brown paid : Calculate the APR which Mr Brown paid for the 30 day loan. Comment on whether this loan legally or morally constitutes usury?

How have banking and the financial services market changed : How have banking and the financial services market changed in recent years? What powerful forces are shaping financial markets and institutions today? Which of these forces do you think will continue into the future?

Receive a lump sum instead of the payments : Your cousin's portion of the settlement will be paid to him in amounts of $25,000 each year for 4 years with the first check to be received immediately. Another attorney called yesterday and asked your cousin if he would like to receive a lump sum..

User Account

All Pages