Econ notes on market for loanable funds

how does consumer confidence affect supply or savings

if confidence is high consumers are more likely to start spending and will save less, if confidence is low consumers will start saving and spend less

how does consumer patience affect supply or saving

if cosumers are more patient they will save more and spend less, private savings will increase as well, and view versa if les patient they will spend more private savings will lower

how does disposable income affect supply and savings

disposable income is income after taxes as disposable income increases people are more likely to save more however if consumption increases it can cause no change

what happens if the gov lowers taxes on income earned from interest

people would save more only if they didn’t also increase consumption

how does gov increasing budget surplus or decreasing budget deficit affect public saving, what about if they decrease budget surplus or increase budget deficit

public savings would increase meaning people would have more money taxes would be reduced, people would have higher taxes and therefore less disposable income so less public saving

how would a decrease in consumer confidence affect total saving

a decrease in consumer confidence would increase savings as peoples confidence in the market and the future of jobs or saving is shaky causing them to save more

how would increase in consumer patience affect savings

a increase in consumer patience would cause consumer to be patient with there money like spending less and saving more for the future patience is tied toncri saving

how does a increase in disposable income affect public saving

if there is a increase in public disposable income, it can cause savings to increase only if consumption dosnt’t also increase.

if the gov releases laws that encourage saving or increasing interest rates how does this affect saving

this gives consumers patients meaning they will save more

how does the gov increasing budget surplus or decreasing budget deficit affect Public savings

if gov increase budget surplus it means they are taking in more revenue then they are printing using better interest rates, reducing budget deficit means they are decreasing spending, less taxes both of these factors will increase public spwhpending

how does new technology affect demand or investments

companies need to invest in both human and physical capital meaning its going to increase investments hatw

what is investor sentiment

investors expectations concerning ability to sell products in future, spending today to produce more in future, better optimism means better hope of sales in future and more spending.

how does change in gov policies lime tax brakes affect company investment

companies are more likely to invest more if given tax brakes by gov hat happens when w

what happens when investment increases

real intrest rate rises, because of higher intreats rates more saving quantity of investments rise, economy grows more rapidly

what happens when total savings increase

real interest rates lower, quantity of investments rise because of low interest rates, economy grows more rapid