Question

The demand curve and supply curve for one-year discount bonds with a face value of $1030 are represented by the following equations: \[ \begin{array}{ll} B^{d:} & \text { Price }=-0.7 {

Answer 1

In the financial market for credit cards, the equilibrium occurs at an interest rate of 15% where the quantity of funds demanded and supplied are equal at an equilibrium quantity of $600 billion.

Step-by-step explanation:

In the financial market for credit cards, the equilibrium occurs at an interest rate of 15% where the quantity of funds demanded and supplied are equal at an equilibrium quantity of $600 billion.

At an above-equilibrium interest rate like 21%, the quantity supplied would increase to $750 billion, but the quantity demanded would decrease to $480 billion.

At a below-equilibrium interest rate like 13%, the quantity demanded would increase to $700 billion, but the quantity supplied would decrease to $510 billion.