The market for loanable funds is described in the following demand and supply schedule.
Suppliers of loanable funds would prefer 14 per cent to any other interest rate in the table. But 14 percent is not what they will receive. Why not? Explain fully.
Answer to relevant QuestionsGraph the loanable funds market of question 3. Suppose the government imposes an interest rate ceiling of 12 percent. What consequences would the ceiling have on the loanable funds market? Suppose you were interested in buying the New York Yankees. If the Yankees generated an annual income of $30 million and if the rate of interest was 10 percent, what would be the present value of the New York Yankees? If the ...Calculate, using the following table, the total value of differential rent generated in the eco nomy when the market price per acre is $30. What is a Lorenz curve? How does it illustrate income inequality? What is aggregate demand? Draw an aggregate demand curve and explain its shape. What factors influence aggregate demand?
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