Suppose the government borrows $20 million more next year than this year. Answer questions d and e a. Draw and fully label a diagram to illustrate the market for loanable fund to analyze this policy. b. Does the rate of interest rise or fall? c. What happens to investment? To private savings? To public savings? To national savings?
Suppose the government borrows $20 million more next year than this year. Answer questions d and e a. Draw and fully label a diagram to illustrate the market for loanable fund to analyze this policy. b. Does the rate of interest rise or fall? c. What happens to investment? To private savings? To public savings? To national savings?
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 8PA
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Suppose the government borrows $20 million more next year than this year. Answer questions d and e
a. Draw and fully label a diagram to illustrate the market for loanable fund to analyze
this policy.
b. Does the rate of interest rise or fall?
c. What happens to investment? To private savings? To
savings?
d. How does the elasticity of the supply of loanable funds affect the size of these
changes?
e. How does the
changes?
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