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Real interest rate (percent per year) Supply of loanable funds (2005 dollars) Demand for loanable funds (2005 dollars) 5 2,000 5,000 7 3,000 4,000 9 4,000 3,000 11 5,000 2,000 a) Draw the demand and supply curves. b) What is the equilibrium real interest rate? c) What is equilibrium investment? Equilibrium saving? d) Describe the situation in Dream Island's loanable funds market when the real interest rate is 10 percent. Is there a shortage of loanable funds? A surplus of loanable funds? e) Describe the situation in Dream Island's capital market when the real interest rate is 6 percent. Is there a shortage of loanable funds? A surplus of loanable funds?
Nigeria and South Africa are the two largest economies in Africa. Examine how these two economies have dealt with the international monetary trilemma in the last one year.
Which one of the following is correct about government spending in the Keynesian model?
[1] Government spending affect the size of the multiplier.
[2] Government spending decreases aggregate spending in the economy.
[3] A decrease in repo rate discourage social spending by government.
[4] Government spending has an effect on the income level in the economy.
C=250+0.75Yd
I=350
G=800
X=500
M=200+0.4Y
T=0.15Y
Interprete the meaning of the value 250
State the value of Mpt, Mpc, Mps and Mpm on disposable income
Find Mpc and Mps on national income
Find the level of National Income in the economy
Calculate the Net exports and interpret
If investment rises by 15 % what will be the change in National income
matic stabilizers ? Choose one of these mechanisms and explain carefully how and why it
affects fluctuations in output.
Which one of the following is correct about government spending in Keynesian model? Government spending affects the size of the multiplier. Government spending decreases aggregate spending in the economy. A decrease in repo rate discourage social spending by government. Government spending influences the income level in the economy
Bank Al Habib issues new shares to finance the construction of an office in Sukkur, Sindh.
Sadia spends 50000 on a computer to use in her editing business in Karachi. She got last year’s model on sale for a great price from a local manufacturer.
You mother spend weekend cleaning your apartment.
Your brother pays a shopkeeper to buy a laptop in Karachi
Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions? Explain your answers (2 Marks, Maximum 200 words).
i. Bank Al Habib issues new shares to finance the construction of an office in Sukkur, Sindh.
ii. Sadia spends 50000 on a computer to use in her editing business in Karachi. She got last year’s model on sale for a great price from a local manufacturer.
iii. You mother spend weekend cleaning your apartment.
Your brother pays a shopkeeper to buy a laptop in Karachi
#340153 on Dec 2023