Explain How Each of the Following Events Affect the Supply

question 74

Essay

Explain how each of the following events affect the supply of loanable funds curve:
a) The economy is in a recession so people's disposable income is lower.
b) The stock market is booming so the people's wealth is higher.
c) Fewer college graduates are finding jobs so expected future income is lower.
d) The real interest rate increases.

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Definitions:

Systems Software

The collection of software that manages computer hardware resources and provides common services for computer programs.

Personal Finance

The management of financial activities such as savings, investment, and budgeting by an individual or a household.

Checkbooks

Books containing blank checks connected to a checking account, allowing the account holder to write checks for financial transactions.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.