Government budget deficit influence the loanable funds

Assignment Help Business Management
Reference no: EM131334363

After you have studied Economics in the News on pp. 174-175, answer the following questions.

A. Why does the news article say that bond prices and interest rates move in opposite directions?  Is it correct? Explain.

B. How does a government budget deficit influence the loanable funds market and why does a decrease in the deficit lower the real interest rate? 

C. When an economic expansion gets going, what happens to the demand for loanable funds and the real interest rate?

D. If an expanding economy increases government tax revenue, how will that affect the loanable funds market and the real interest rate?

E. Looking at Fig. 1 on p. 175, what must have happened to either the demand for or the supply of loanable funds during 2011, 2012, and 2013?

Reference no: EM131334363

Questions Cloud

Example of horizontal growth : Which of the following is an example of horizontal growth?
Describing how a specific system used in an organization : Discuss how the business requirements drove the system's initial development - Describe the type and basic uses of the system, how the system has helped the organization, and any likely future development plans.
Currency crisis-cause and resolution : A number of currency crises have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries.
What is amount of the dividend : The common stock of GT Enterprises is selling for $63.09 a share. The company pays a constant annual dividend and has a total return of 11.64 percent. What is the amount of the dividend?
Government budget deficit influence the loanable funds : A. Why does the news article say that bond prices and interest rates move in opposite directions?  Is it correct? Explain. B. How does a government budget deficit influence the loanable funds market and why does a decrease in the deficit lower the ..
Explain the most important step in the conversion process : Suggest the key advantages and disadvantages of automating a manual accounting system. Identify the most important step in the conversion process.
What are arithmetic and geometric returns for stock : A stock has had returns of 13 percent, 31 percent, 18 percent, −19 percent, 31 percent, and −7 percent over the last six years. What are the arithmetic and geometric returns for the stock?
What type of goods are good a and good b : Assume that the price of competing Good B decreases by 5% and as a result, the quantity demand for Good A decreases by 8%. What is the cross-price elasticity for your product? What type of goods are Good A and Good B?
What is the managers role in conflict management : Strategies and methods needed to influence organizational change and to minimize conflict - What are strategies that might be used to bring about change in the organization?

Reviews

Write a Review

Business Management Questions & Answers

  Financial benefits of strategic management

What are the financial benefits of strategic management to an organisation?

  Total cost at two volumes

1. The average total cost of operating a surgical room is $700 per case if the volume is 100 cases, and $690 per case if the volume is 110 cases. What is total cost at each of these two volumes? What is the marginal cost of another case within thi..

  Third party supplier relationship managementshow what is

third party supplier relationship managementshow what is the value to the company and the supplier in developing and

  Do not sell the current database list

Do not sell the current database list.

  Federal finance laws

According to federal finance laws, individual contributions to federal candidates are capped at predetermined amounts.

  Describe how the five components relate to safeguards

Describe how the five components relate to safeguards and Describe two or three technical and two or three data and two or three human safeguards.

  Examining the companys corporate strategy

You will prepare a report presenting the findings of your comprehensive analysis examining the Company's corporate strategy and its ability to increase competitive advantage.

  Explain your most memorable experience with a salesperson

Explain your most memorable experience with a salesperson that was positive and made you feel comfortable. Explain an experience with a salesperson that was unpleasant and made you feel uncomfortable

  Outline the major inspirations on business buyers

Outline the major inspirations on business buyers. Why is it significant for the business-to-business buyer to understand these major influences?

  Identify two consequences of management not establishing

Discuss the importance of senior management in setting the tone at the top for honesty and integrity within a company. Identify at least two consequences of management not establishing a code of ethics.

  Explain domestic and international hrm

Compare and contrast two (2) main differences between domestic and international HRM.

  Would you control access to the system

Why would an organization want to create an implementation plan for the integration of a MIS? Is this something that needs to be well thought out and, if so, why?

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