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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.
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 affects demand and supply for loanable funds?
Interest rate, time preference, consumption smoothing, inflation expectations
What happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
What happens to price when a shortage exists?
Consumers bid up the price.
Who the major demanders of loanable funds are?
they are the major demanders of loanable funds.
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.
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
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 affects demand and supply for loanable funds?
Interest rate, time preference, consumption smoothing, inflation expectations
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.
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 happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
What are some failures of the freedmen's bureau?
was provented from fully carrying out the program due to shortage of funds.
What is intermediate market?
In an intermediated market, a financial institution is responsibile for the channeling of loanable funds from individual and corporate savers to borrowers. Unlike the non-intermediated market, the intermediated market is considered to be a more in-direct form of borrowing.
