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Module 29

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Module 29

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Module 29 - The Loanable Funds Market - Fill-in-the-Blank (Part 2)

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Zachary Foust
Zachary Foust
United States

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Module 29 - The Loanable Funds Market - Fill-in-the-Blank (Part 2)

by Zachary Foust
1

The equilibrium interest rate changes when there are of the demand curve for loanable funds or the supply curve for loanable funds .

A change in beliefs about the rate of return on investment spending can increase or reduce the for loanable funds .

Governments that run are major sources of the demand for loanable funds .

An increase in the demand for loanable funds means the equilibrium interest rate .

If the interest rate , businesses will cut back on their investment spending .

The effect of government budget deficits on investment spending is called .

A change in private savings behavior can shift the of loanable funds to the left or to the right .

An increase in capital inflows can shift the of loanable funds to the right .

An increase in the supply of loanable funds means the equilibrium interest rate .

interest rate = interest rate - inflation rate

The expectations of borrowers and lenders about future inflation rates are normally based on recent .

An increase in the expected inflation rate drives up the interest rate by the same number of percentage points .

In the short - run , the loanable funds market the lead of the money market .

 
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