AP Macroeconomics Mkt 4 E a Explain Using Graphs As Appropriate the Determinants of Demand and Supply in the Loanable Funds Market B Explain Using Questions

Shift loanable-funds demand or supply for investment, saving, fiscal policy, and capital flows, then trace real-rate and investment effects.

Exam points

shift demand for loanable funds when business confidence or expected investment returns change
shift supply of loanable funds for changes in private or national saving
shift loanable-funds supply for a change in foreign capital inflow
show how a budget deficit or greater government borrowing raises the equilibrium real interest rate
show how a budget surplus or lower government borrowing reduces the equilibrium real interest rate

[Maximum number: 2]

Assume that the economy of Barrikos is in short-run equilibrium, with its economic data summarized in the table provided. The government budget is balanced, and the capital and financial account (CFA) balance is zero.

Table for Question AP Macroeconomics Mkt 4 E a Explain Using Graphs As Appropriate the Determinants of Demand and Supply in the Loanable Funds Market B Explain Using Questions question 1 — AP Macroeconomics

Assume that the fiscal policy action identified in part C is implemented.

Draw a correctly labeled graph of the loanable funds market, and show the effect of the fiscal policy action identified in part C on the real interest rate.

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AP Macroeconomics Mkt 4 E a Explain Using Graphs As Appropriate the Determinants of Demand and Supply in the Loanable Funds Market B Explain Using Questions question 1