dolution

 

1. Fill in the blanks to make the following statements correct.

 

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

a. The economy’s equilibrium interest rate is determined where __________. At an interest rate above the equilibrium interest rate, the quantity of capital supplied __________ quantity of capital demanded, and the result is a(n) __________ in the interest rate.

 

b. At an interest rate below the equilibrium interest rate, the quantity of capital demanded __________ the quantity of capital supplied, and the result is a(n) __________ in the interest rate.

 

c. Beginning in equilibrium in the capital market, an increase in the supply of financial capital leads to a(n)  __________ in the equilibrium interest rate, a(n) __________ borrowing by firms, and a(n) __________ in the equilibrium level of investment and saving.

 

d. Beginning in equilibrium in the capital market, an increase in the demand for financial capital leads to a(n) __________ in the equilibrium interest rate, a(n) __________ desired saving by households, and a(n) __________ in the equilibrium level of investment and saving.

 

e. Technological improvements lead to a(n) __________ in both the demand for and the supply of financial capital. As a result, technological improvements can explain a(n) __________ capital stock and __________ in the interest rate.

 

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"