If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?
a. $8,000
b. $10,000
c. $14,000
d. $12,500
e. $18,000
D
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The market supply curve for labor in a perfectly competitive labor market:
A) is horizontal or perfectly elastic. B) is vertical or perfectly inelastic. C) can be derived by vertically adding the individual supply curves of labor. D) can be derived by horizontally adding the individual supply curves of labor.
If the U.S. government decreased its holdings of Mexican pesos, definitely
A) the capital and financial account would increase. B) the capital and financial account would decrease. C) there would be an increase in U.S. official reserves. D) there would be a decrease in U.S. official reserves.
The firms in an oligopoly market structure agree to collude because:
a. it helps them to earn more profits. b. each firm wants to know the strategy of its rivals. c. each firm wants to charge a lower price for its product than its rivals. d. the firms want to maintain a healthy relationship with each other. e. it helps them to enjoy economies of scale.
Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was 4 percent. It follows that
a. the dollar value of savings increased at 6 percent, and the purchasing power of savings increased at 2 percent. b. the dollar value of savings increased at 6 percent, and the purchasing power of savings increased at 10 percent. c. the dollar value of savings increased at 10 percent, and the purchasing power of savings increased at 2 percent. d. the dollar value of savings increased at 10 percent, and the purchasing power of savings increased at 6 percent.