International Stock Market Regulation: Using
economic models (such as the market for loanable funds and
aggregate...
International Stock Market Regulation: Using
economic models (such as the market for loanable funds and
aggregate supply/aggregate demand), explain how NOT harmonizing
regulations would impact a developing economy.
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.
Using a graph of the market for loanable funds, briefly explain
the effects of each of the following on the real interest rate,
saving, and investment.
(a) A decrease in the federal budget deficit.
(b) An introduction of new investment tax credit on plant and
equipment.
2. Using a demand and supply diagram for the market for loanable
funds and an AD-AS model, illustrate and explain what happens when
the Federal Reserve decides to lower the reserve requirement.
Sample Multiple Choice Questions
1. A money market account is in:
a. M1 only
b. M2 only
c. M1 and M2
d. neither
2. When the Federal Reserve buys bonds, this is
a. Contractionary Monetary Policy
b. Expansionary Monetary Policy
c. Contractionary Fiscal Policy
d. Expansionary Fiscal Policy...
In the open-economy market for loanable funds, the demand for
loanable funds comes from
A. domestic investment
B. the sum of domestic investment and net capital outflow
C. net capital outflow
D. national savings
The market for loanable funds and government policy The
following graph shows the market for loanable funds. For each of
the given scenarios, adjust the appropriate curve on the graph to
help you complete the questions that follow. Treat each scenario
separately by resetting the graph to its original state before
examining the effect of each individual scenario. (Note: You will
not be graded on any changes you make to the graph.) Demand Supply
INTEREST RATE (Percent) LOANABLE FUNDS (Billions...
The accompanying graph shows the market for loanable funds.
Using copy tools, illustrate how the market would be affected by an
increase in the government's budget deficit. Label the new curve(s)
appropriately. Then use the double drop line tool to plot the new
equilibrium (label it E2).
PS: i dont know how to send the graph. The question has been
answered before but the answer was incorrect