Explain events on the interest rate in the loanable funds

Assignment Help Business Economics

Reference no: EM13156402

Explain the effect of the following events on the interest rate in the loanable funds market. Demonstrate you answer graphically.

a) tax revenue is lower than expected and people expect cities to default on municipal bonds. They sell thier bonds and hold cash instead.

b) a significant number of people begin to use online banking services, allowing them to lower the average balance on their checking account.

c) economists begin to expect economic growth to pick up. In response, firms increase the amount they spend on capital goods.

Reference no: EM13156402

Questions Cloud

Determine the sample size needed to be confident : Determine the sample size needed in order to be 99% confident that the sample proportion of the current customer accounts is within .03 of the true proportion of all current accounts for this company.

What happens to firm b stock price in year : The investors in exercise 2 are surprised by firm's performance in year 5. Instead of being $20 million, the firm's profits are $40 million. What happens to firm B's stock price in year 6 and 7?

Which is a recognized source of variation for evolution : Although each of the following has a better chance of influencing gene frequencies in small populations than in large populations, which one most consistently requires a small population as a precondition for its occurrence?

Find the initial rate of reaction : How many milliliters of O2 measured at 24C and 757mmHg , are released from solution in the first minute of the reaction? Please find volume

Explain events on the interest rate in the loanable funds : Explain the effect of the following events on the interest rate in the loanable funds market. Demonstrate you answer graphically. tax revenue is lower than expected and people expect cities to default on municipal bonds. They sell thier bonds and..

Contents of the security and privacy tabs : Using a Microsoft Windows XP, Vista, or 7 system, open Internet Explorer. Click Internet Options on the Tools menu. Examine the contents of the Security and Privacy tabs. How can these tabs be configured to provide: (a) content filtering and (b) p..

Preparing a bond amortization schedule : Prepare a bond amortization schedule up to and including January 1, 2013, using the effective-interest method.

Find the quantity - price and profits in equilibrium : Find the quantity, price and profits in equilibrium. Calculate the consumer surplus. Are consumers better off or worse off in this situation than in (a)?

Which of the processes is not a part of photosynthesis : Which of the following processes is not a part of photosynthesis?

User Account

All Pages