1a) The surplus and deficit economic agents engage in financial markets transactions to satisfy their needs in the most efficient manner. Explain the needs and motivation of those surplus and deficit economic agents. Discuss why they use the financial markets and how they have conflicting preferences in terms of liquidity, risk and amounts of money.

1a) The surplus and deficit economic agents engage in financial markets transactions to satisfy their needs in the most efficient manner. Explain the needs and motivation of those surplus and deficit economic agents. Discuss why they use the financial markets and how they have conflicting preferences in terms of liquidity, risk and amounts of money.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 1QR

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