Try another version of these questions
The graph below shows the supply and demand curves in the market for credit card borrowing.
What is the equilibrium interest rate?
| Hint | 7
|
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
Suppose that individuals shift their intertemporal consumption-savings decisions and decide to buy more things now. Which graph most accurately shows how this would affect demand and supply for borrowing money with credit cards? Note that the new curve is shown in gray.
Supply shift left and Demand curve shift right:
Hint
Box 1: Select the best answer
Suppose that consumers have a major change in their consumption/savings preferences. As a result of a serious recession they decide to consume less and save more. Which graph most accurately shows how this would affect demand and supply for borrowing money with credit cards? Note that the new curves are shown in gray.
Supply curve shifts right and Demand curve shifts left:
Hint
Box 1: Select the best answer