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Daniel [21]
2 years ago
10

Imagine you live on the planet Krypton. The loanable funds market on Krypton is thriving and life is good. However, the planet i

s very, very old and the great scientists and philosophers on the planet have begun discussing openly that the planet may be on the verge of destruction. Even if the great thinkers are wrong, the loanable funds market will change in the short term. Specifically, the supply of loanable funds is expected to __________, and as a result the amount of economic output in the future is expected to __________
Business
1 answer:
sergij07 [2.7K]2 years ago
5 0

Answer: fall; decrease

Explanation:

People save in order to be able to consume in future. If it is discovered that there will be no fixture, there would be no need to save. The supply of loanable funds would therefore decrease as people stopped saving.

Because there is reduced loanable funds, less investments would be done as these require loanable funds. With less investments being done, the economic output will decrease.

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An example of short term investment goal would be saving for:
Debora [2.8K]

Answer:

Watching movies

Explanation:

Short term goal can take days or weeks to accomplish, if you're saving for a house that will take months or even years, for retirement you have to be certain age and tertiary education is an education as the word said it comes third it means college studies for that also you have to wait a long time.

5 0
3 years ago
What is the United States currency linked to?
ElenaW [278]
The U.S. dollar is fiat money, as are the euro and many other major world currencies. This approach differs from money whose value is underpinned by some physical good such as gold or silver, called commodity money. The United States, for example, used a gold standard for most of the late 19th and early 20th century
7 0
2 years ago
Read 2 more answers
which costs of inflation could the government reduce without reducing inflation? a. arbitrary redistributions of wealth b. shoel
Ilya [14]

Answer:

A is the correct answer.

Explanation:

Inflation causes an arbitrary redistribution of wealth and income. Unexpected inflation is responsible for it. The redistribution of income is caused because the wages and salaries increase rapidly the prices.  and other wages and salaries slowly than the price level. The increase in the prices of some assets more rapidly than the price level while the asset prices increase slower than the price level causes the redistribution.

4 0
3 years ago
If the government increases its spending when the economy is expanding, automatic stabilizers _____ the government spending mult
SVETLANKA909090 [29]

Government increases its spending when the economy is expanding, automatic stabilizers increase the government spending multiplier.

Automatic stabilizers offset fluctuations in economic interest without direct intervention by policymakers. when incomes are excessive, tax liabilities rise and eligibility for authorities blessings falls, with no trade in the tax code or other legislation.

All through a monetary increase, automated stabilizers enable the government to chill off expansion or even fight inflation. while earnings fall, the identical stabilizers can position cash returned in the machine by means of tax refunds, welfare assessments, and other strategies to permit huge quantities of government spending.

Learn more about the government stabilizers here:brainly.com/question/25558588

#SPJ4

4 0
2 years ago
A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purch
andrezito [222]

Answer:

This is an example of switch trading.

Explanation:

Switch trading is defined as a practice where one company goes into agreement with another company located in a different country to commit in the purchase of each company’s goods and services. This common practice is part of the countertrading category, which is the exchange of goods and services with other goods and services. Other examples of countertrading include barter, counter purchase, buyback, offset, and compensation trade.

5 0
2 years ago
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