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What are some of the major factors affecting the supply of loanable funds?
James907
depends on five factors: the real interest rate, the household’s disposable income, the household’s expected future income, wealth, and default risk. A household increases its saving if the real interest rate increases, its disposable income increases, its expected future income decreases, its wealth decreases, or if default risk decreases.
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∙ 11y ago
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Who the major demanders of loanable funds are?
they are the major demanders of loanable funds.
Will interest rates increase if the demand for loanable funds increases?
yepp. draw a loanable funds graph. http://www.schooltube.com/video/0fd3f5c29ca74dc5af00/Fiscal%20Policy
What are the two basic sources of loanable funds?
short term funds and currency
Who the main suppliers of loanable funds are?
The suppier are people who saves money, While the demanders are people who borrow the money . NA GOD #
What are the factors affecting long term funds requirement?
Factors determining fixed capital requirements§ Nature of business§ Size of business§ Stage of development§ Capital invested by the owners§ location of that area
Why in an open economy does the supply of loanable funds slopes upward?
The supply of loanable funds slopes upwards in an open economy because there are more funds available. An open economy allows for more money to be put into the economy.
What happens when the bonds supply curve becomes negatively sloped?
when we use the "loanable funds frame work" the Bs become negative.\ Supplying a bond = demanding a loan = demanding loanable funds. Demanding a bond = supplying a loan = supplying loanable funds.
Who the major demanders of loanable funds are?
they are the major demanders of loanable funds.
What affects demand and supply for loanable funds?
Interest rate, time preference, consumption smoothing, inflation expectations
Will interest rates increase if the demand for loanable funds increases?
yepp. draw a loanable funds graph. http://www.schooltube.com/video/0fd3f5c29ca74dc5af00/Fiscal%20Policy
What are the two basic sources of loanable funds?
short term funds and currency
What is the basis of the relationship between the fisher effect and the loanable funds theory?
The borrowers desire to achieve a positive real interest.
What happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
Who the main suppliers of loanable funds are?
The suppier are people who saves money, While the demanders are people who borrow the money . NA GOD #
How much gold does the imf hold?
As of the last update it has $201bn of loanable funds and about $65bn already loaned. The way it raises these funds needs more space to answer but is worth investigating. Hope that helps.
What are the factors affecting long term funds requirement?
Factors determining fixed capital requirements§ Nature of business§ Size of business§ Stage of development§ Capital invested by the owners§ location of that area
What are the factors affecting advertising expenditure?
1. Immediate change in market conditions. 2. Change in rates of media & agency. 3. Change in Sources of funds. 4.Natural calamities
