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Is there any common denominator that we can use to study the market such as market for wheat, market for public utilities, market for jewelry, and market for crude oil?
The availability of the common denominator that we can use to study the market such as market for wheat, market for public utilities, market for jewelry, and market for crude...
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Peter harry plc is in need of funds from the capital market. Outline and discuss the different methods of raising funds from the capital market
(a) RIGHTS OF ISSUE. This is done by selling securities in primary market by issuing shares to existing shareholders.(b) PRIVATE PLACEMENT. Here the capital issue is sold directly to small group of...
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At the medium level of demand (D M), the equilibrium price will be $________ and the equilibrium quantity will be ________ units.
If 100 units of output is the optimal and most profitable level of production for the firm, then at the medium level of demand (D M), the equilibrium price will...
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6. The crowding out effect refers to how a government budget deficit ___ the demand for loanable funds. This leads to ___ real interest rates that ___ investment.
The crowding out effect refers to how a government budget deficit increases the demand for loanable funds. This leads to raise real interest rates that decreases investment.
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If ___ increases, both the interest rate and the quantity increase/s. When ___ increases, the interest rate drops and the quantity increases.
If money demand increases, both the interest rate and the quantity increase/s. When money supply increases, the interest rate drops and the quantity increases.
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What determines the supply of loanable funds?
What affect the supply curve of loanable funds and how does it change?
What determines the supply of loanable funds?savingsWhat affect the supply curve of loanable funds and how does it change?the interest rate affect the supply curve of loanable funds.If the supply...
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What determines the demand for loanable funds? What affect the demand curve of loanable funds and how does it change?
The demand for loanable funds is based on borrowing.The lower the interest rate, the less expensive it is to borrow.Interest rate affects the demand curve for loanable funds. The demand...
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effects of an increase in disposable income in loanable funds market
Disposable income = income of households from all sources - taxesAn increase in wealth implies an increase in the total income of households and hence an increase in disposable income....
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Discuss the loanable funds theory and interest rates (12marks)
Solution:According to the loanable fund's theory, the interest rate is determined by the demand for and supply of loanable funds. The supply of loanable funds represents the behavior of all...
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If both planned savings and planned investment increase by $1 billion at each real interest rate, explain the change in the real interest rate and equilibrium quantity of loanable funds.
Changes in interest rates in various segments of the financial market affect the willingness of economic participants to borrow, invest, save or consume and, accordingly, translate into the dynamics of...
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