Thank you for visiting Suppose the market for loanable funds is in equilibrium Given the numbers below find the demand for loanable funds investment GDP 8 7 trillion Consumption. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
The demand for loanable funds or investment at equilibrium in the market for loanable funds, given the provided GDP, Consumption Spending, and Government Purchases, is $2.2 trillion. Option d is correct.
Explanation:
To find the demand for loanable funds (investment) when the market for loanable funds is in equilibrium, we need to use the following equation:
GDP = Consumption Spending + Investment + Government Purchases + (Exports - Imports)
In a closed economy without trade, the equation simplifies to:
GDP = Consumption Spending + Investment + Government Purchases
Thus, Investment can be calculated as:
Investment = GDP - Consumption Spending - Government Purchases
Using the provided numbers:
- GDP = $8.7 trillion
- Consumption Spending = $3.5 trillion
- Government Purchases = $3.0 trillion
Investment = $8.7 trillion - $3.5 trillion - $3.0 trillion = $2.2 trillion.
This is the amount of loanable funds demanded for investment at equilibrium in the market.
Thank you for reading the article Suppose the market for loanable funds is in equilibrium Given the numbers below find the demand for loanable funds investment GDP 8 7 trillion Consumption. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
