· 11/26/201 7 11:55 PM Print ore 83.9/100 Calculator Gradebook Question 15 of 23

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· 11/26/201 7 11:55 PM Print ore 83.9/100 Calculator Gradebook Question 15 of 23 Sapling Learning Identify the impact on either the supply or demand of loanable funds following the events listed below. Economic conditions deteriorate, prompting households to save a larger portion of their income. Supply Supply will increase. In an effort to balance the budget, the government increases taxes paid by businesses. Demand will increase not change. Economic conditions improve, increasing the demand for goods and services. Demand will increase. Innovations in robotics technology vastly improves productivity within manufacturing firms Supply will not change. There is a hint available! View the hint bottom divider on the on the divider bar again to hide the hint. Close Ed Previous Give Up & View Solution e Check Answer 0 Next Hint

Explanation / Answer

Economic conditions deteriorate ,prompting househols to save a larger portion of their income. Supply of loanable funds will increase because now by saving more , supply of loanable funds will shift to right.

In an effort to balance the budget, the government increases taxes paid by businesses. Supply of loanable funds will decrease because now saving decreases.

Economic conditions improve , increases the demand for goods and services . Demand for loanable funds will increase.(because to buy goods and services therecan be higher demand for loanable funds).

Innovations in robotics and technology vastly improves productivity within manufacturing firms . This has not any impact on supply or demand of loanable funds.

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