Examlex
Suppose the following equations give the demand and supply for loanable funds in billions of dollars; r is the real interest rate in percentage points :
QD = 160-10r
QS = -20 + 20r
a) How do the demand and supply equations change if the government deficit increased by $5 billion?
b) Calculate the new equilibrium interest rate and quantity of loanable funds. (Compare this to the zero-deficit equilibrium.)
c) Calculate the changes in consumer and producer surplus due to the increase in government deficit. Who gains and who loses from the change in government deficit?
Restricted Fund Method
An accounting principle used by non-profit organizations, where donations or grants are kept in separate accounts and are spent only according to donors' stipulations.
Capital Fund
A financial resource that is used for the purchase of fixed assets or for significant investment in a business, not consumed in normal operations.
Restricted Contribution
A donation given to an organization with explicit limitations on its use by the donor.
Fixed Assets
Fixed assets, also known as non-current assets, are long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.
Q17: When the Soviet Union began breaking up
Q28: According to the quantity equation,if Y doubles,V
Q41: Suppose that in a closed economy GDP
Q55: Imagine a small town with only two
Q92: Which of the following constitutes the labour
Q110: When a graph of the money market
Q124: What is a bond?<br>A) a financial intermediary<br>B)
Q133: Unemployment due to job search is best
Q157: If you deposit $100 into a demand
Q191: Statistics Canada uses data from each province's