10SQ7 - . [3] Cause: Effect: 3. a. Please utilize the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Please turn in your answer in the beginning of Exam 2. Eco. 1A. Quiz 7. Name: _____________________. ID: ____________________. 1. Under what assumptions we can use DLF and SLF curves to describe the loanable funds market? [3] (1) (2) (3). 2. Use DLF and SLF curves to evaluate graphically the effect of “the demand for loanable funds increases, i.e., DLF↑ and the supply of loanable funds increases, i.e., SLF↑,” on r and I. Please state “cause” and “effect” explicitly
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: . [3] Cause: Effect: 3. a. Please utilize the loanable funds market, i.e., PDLF, DLFD & SLF, to examine the impact of government budget deficit, i.e., T - G < 0 on real interest rate (r) quantity of private loanable fund demanded (I) graphically . Also state Cause and Effect explicitly. [4] Cause: Effect: b. What is crowding out effect? Show the amount of crowing out in the graph in a. [2]...
View Full Document

This note was uploaded on 09/08/2010 for the course ECON 1A at San Jose State University .

Ask a homework question - tutors are online