1) explain five (5) factors that cause the supply
curve of loanable funds to shift
2) discuss four (4) factors that can cause a change in
the demand curve of a bond and show how these charges affect the
curve
Which of these factors shift(s) the supply curve of loanable funds?
decrease in foreign income
increase in foreign income
decreased productivity of capital
decrease in time preferences
more people in midlife
increase in income
investor confidence
Explain in detail the concept of loanable funds market.List and
explain two factors that shift the demand of loanable funds and two
factors that shift the supply of loanable funds
QUESTION TWO
(a) Discuss any five (5) factors that can cause the supply
curve for maize in Zambia to shift to the
right.
(a) Product A’s price increases from K1,000 per unit to K1,300
per unit whereas quantity demanded for product B increases from
5,000 units to 9,000 units. Answer the following questions;
Define the applicable elasticity and state its
formula.
Calculate the elasticity and discuss your
answer.
Explain the relationship between products A and
B.
(b) State...
Using the loanable funds theory and the demand and supply of
loanable funds, explain what will happen to the real interest rate
in an economy if a recession occurs, such as occurred with the
Covid19 pandemic.