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Marina86 [1]
3 years ago
6

There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c

haracterize these two aspects of efficiency. a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money. b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing. c. Investment projects that are financed have smaller rates of return than projects not receiving financing. d. All potential savers lend money. e. Savers who lend money are willing to accept a higher minimum interest rate than potential savers who do not lend money. f. There is always a small surplus of funds in the market.
Business
1 answer:
Mashutka [201]3 years ago
5 0

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

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<h3>Percentage change in the quantity demanded</h3>

Using this formula

Percentage change in quantity demanded= (Total amount of gasoline purchased- total amount of gasoline purchased in united states)/ Total amount of gasoline purchased in united states×100

Let plug in the formula

Percentage change in quantity demanded=(12 - 8) / 8

Percentage change in quantity demanded =4/8×100

Percentage change in quantity demanded=50%

Inconclusion  the percentage change in the quantity demanded is: 50%.

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2 years ago
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Answer: Opportunity cost

Explanation:

The economic principle best embodied by this story is the opportunity cost. Opportunity cost is the cost of what one forgoes when one takes an alternative decision.

In this case, the opportunity cost of him visiting his aunt will be the lost opportunity which he could have used to watch his brother play.

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3 years ago
When the price of football tickets increases, the substitution effect decreases the number of tickets bought from?
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How should emotional appeal in fund-raising messages be used? A. Using a mild appeal to convince people and avoid offending them
marysya [2.9K]

Answer:

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Sensory details are used in writing to attract readers' attention. Those details involve the use of the senses: <em>sight, sound, touch, smell, </em>and <em>taste</em>. Sensory details help information, whether written or spoken, to push the audience to interact with what us being prompted.  

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