1. Suppose that 20- to 40-year-olds across the country have decided that it is more important to spend more now, and they start to disregard their retirements in the future. How will the demand or supply curves shift to illustrate how the above scenario will affect the U.S. loanable funds market.
2. In the next decade it is expected that the United States will alter its relationship with Cuba. When regulations regarding investment in Cuba are lifted, it is believed that many Cuban-Americans will send lots of money to their relatives on the island. This will effectively increase the incomes of those living in Cuba. Considering the loanable funds market in Cuba, what will be the likely effect of this sudden increase in wealth? How will the demand or supply curves shift appropriately to illustrate how the above scenario will affect the U.S. loanable funds market.
3. Suppose that a new report by the Federal Reserve indicates that worldwide economic prospects are much stronger than predicted. Investors like this news.
How will the demand or supply curves shift to illustrate how the above scenario will affect the U.S. loanable funds market.