Japan, the European Union, Canada, and Mexico have flexible exchange rates.

Suppose Japan attracts an increased amount of investment from the European Union.

Using a correctly labeled graph of the loanable funds market in Japan, show the effect of the increase in foreign investment on the real interest rate in Japan.

MY QUESTION: My doesn't DEMAND shift right for Japan's foreign investment? (correct answer is that supply shifts right)

2 answers

AD shifts right overall, but in the market for loanable funds the supply shifts right, because at any given interest rate, there will be more loanable funds available
vdvd
Similar Questions
  1. To which countries were the Jamestown settlers hoping to find a passage?Responses Mexico and Canada Mexico and Canada Japan and
    1. answers icon 1 answer
  2. Did I choose the correct answer #3In the mid- to late 1880s, the United States experienced a surge in immigrants from <China and
    1. answers icon 1 answer
  3. Use the table to answer the question.Top 10 Countries for Texas Exports Top 10 Countries for Imports to Texas Mexico Canada
    1. answers icon 1 answer
  4. Use the table to answer the question.Top 10 Countries for Texas Exports Top 10 Countries for Imports to Texas Mexico Canada
    1. answers icon 1 answer
more similar questions