If there is a shortage in the market for loanable funds, what happens to desired saving and

Fantastic news! We've Found the answer you've been seeking!

Question:

If there is a shortage in the market for loanable funds, what happens to desired saving and desired investment as the interest rate moves to its equilibrium value?

a. desired saving and desired investment both fall

b. desired saving and desired investment both rise

c. desired saving falls and desired investment rises

d. desired saving rises and desired investment falls

Related Book For answer-question

Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

Posted Date: Nov 20, 2023 11:11 PM

See More Questions

The largest amount of energy is available to (A) Population A (B) Population B (C) Population C (D) Population D Shows the relative biomass of four different populations of a particular food pyramid....
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
Calculate the component of v = ( 2, 1/2, 3) along w = (1, 2, 2).
State eight characteristics of the normal distribution.
At room temperature the electrical conductivity of PbS is 25 (.m)-1, whereas the electron and hole mobilities are 0.06 and 0.02 m2/V.s, respectively. Compute the intrinsic carrier concentration for...
For the toluene-water system in Example 13-7, we found toluene is the dispersed phase if $\mathrm{Q}_{\text {solvent }} / \mathrm{Q}_{\text {feed }}=0.2$. Which phase is dispersed if a....
Canada Printing Group, Inc. (CPGI), has recently begun the process of acquiring small to medium-size local and regional printing firms across the country to facilitate its corporate strategy of...
The Tax Reform Act of 1 9 8 6 was considered revenue neutral because: It set the projected tax burden evenly between businesses and individuals. It evened out the tax brackets between the different...
Underground Sandwiches, a sandwich shop, has the following marginal physical product curve (labeled MPP) for its hourly production. (?) 20 18 16 O MPP and AP (Sandwiches per hour) AP MPP 0 1 3 5...
Question 1 [40 marks] (a) Two homogeneous (.e. soluble) Fe complexes are dissolved in solution. Both complexes are present at a concentration of 0.004 M each. Complex 1 exhibited an absorption band...
Explain how the inclusion of Alpha risk affects the calculation of the preliminary estimate of the sample size. Explain the circumstances in which it is desirable to include or exclude Alpha risk in...
Describe and explain reinsurance and its social role.
What are underwriters, and what do they do?
Describe and explain how investment banks assist companies wishing to raise finance.
Why are the shape and standard deviation of populations important to auditors planning to use variables sampling? Identify two factors that make it difficult for auditors to determine the shape and...
Which is true about the following compound. Select all that apply.... :0 Which is true about the following compound. Select all that apply: The IR spectrum will show a medium absorption peak around...
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
True or False: 1. By imposing monetary and nonmonetary costs on monopolists, antitrust policies aim to reduce the profitability of monopoly. 2. Government regulation of monopolies aims to achieve the...
Consumption equals $32,000 when disposable income equals $40,000. Consumption increases to $38,000 when disposable income increases to $50,000. What is the marginal propensity to consume? The...
Multiple Choice Questions: 1. Which of the following is not a question that all societies must answer? a. How can scarcity be eliminated? b. What goods and services will be produced? c. Who will get...
A pipeline containing ammonia gas is vented to ambient air via a $20-\mathrm{m}$ long, $3-\mathrm{mm}$ diameter tube. What is the mass flow ( $\mathrm{g} /$ day) of ammonia into the atmosphere?...
We have steady-state diffusion of ammonia in air across a $0.033 \mathrm{~mm}$ thick film. On one side of the film ammonia concentration is $0.000180 \mathrm{kmol} / \mathrm{m}^{3}$, and on the...
Determine the modified Sherwood number \(\mathrm{Sh}_{\text {gas,partial_pressure }}=\frac{\mathrm{k}_{\mathrm{p}} \mathrm{d}_{\text {tube }}\left(\mathrm{p}_{\mathrm{B}}...

If there is a shortage in the market for loanable funds, what happens to desired saving and

Question:

Expert Answer:

The detailed answer for the above question is provided below Whe... View the full answer

Exploring Economics

Students also viewed these operating system questions