Draw a graph depicting profit admonishs at the bulk of loanable funds (such as the graph in condition 15.7). Solution the forthcoming questions touching this graph.
Explain why the insist of loanable funds is upward sloping.
Explain why the contribute of loanable funds is downward sloping.
If the Federal Retention sells council bonds, profession what procure supervene to this graph. Elucidate the goods on profit admonishs and the bulk of loanable funds.
If the Federal Retention lowers the required retention admonish, profession what procure supervene to this graph. Elucidate the goods on profit admonishs and the bulk of loanable funds.
List and elucidate the logic rearwards the “indecent functions of currency.” Then, weigh the forthcoming: In sundry prisons, cigarettes are used as currency. Do cigarettes in prison keep the power to satisfy
these indecent functions? Explain.
For each of the forthcoming questions, evaluate whether the announcement is “true” or “false”. Then, contribute a trivial interpretation to vindicate your solution.
If the fleetness of currency acceptions and rush else changes, trifling GDP procure ascend.
If the required retention admonish is 5%, bank runs procure be past mitigated than if the required retention admonish is 20%.
If the required retention admonish is acceptiond from 10% to 20%, the total of currency in companionship procure envelop.
If the appreciate of M1 acceptions and rush else changes, the appreciate of M2 procure besides acception.