Reference no: EM1314640
1. In 1999, the Batman family (Batman and Robin) had a disposable income of $50,000, wealth of $100,000, and expected future income of $50,000 a year. At an interest rate of 4 percent a year, the Batmans would save $10,000; at 6 percent a year, they would save $12,500; and at 8 percent a yr, they would save $15,000.
a. Draw a graph of the Batman family's supply of loanable funds curve fro 1999.
b. In 2000, everything remained the same as the year before except that the Batmans expected their future income to rise to $60,000 a year. Show the influence of this change on the Batman's supply of loanable funds curve.
2. If the US cracked down on illegal immigrants and returned millions of workers to their countries of origin, what would happen in the US to,
a. Potential GDP
b. Employment:
c. The real wage rate:
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: Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
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