Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 24, Problem 19APA
To determine

Graphically illustrate the effect of a rise in the demand and supply of loanable funds on the real interest rate and the equilibrium quantity of loanable funds.

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Draw a graph to illustrate the effect of an increase in the demand for loanable funds and an even larger increase in the supply of loanable funds on the equilibrium quantity of loanable funds and the real interest rate.
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