1. When talking about loans, who supplies loans and who demands loans? How do you know...

1. When talking about loans, who supplies loans and who demands loans? How do you know that?

2. When working with the money market graph or loanable funds graph, which interest rate are we focused on?

3. When dealing with whether or not to invest in a new project, what will businesses look for with regard to the rate of return? When will they invest and when will they not invest?

4. What happens to the demand for loans when the interest rates are low?

5. What happens to the supply of loans when interest rates are high?

6. Draw a correctly labeled loanable funds graph below.

7. What shifts the demand for loanable funds?

8. What shifts the supply for loanable funds?

Solutions

Expert Solution

Rahul Sunny answered 2 months ago

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