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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

In the financial market, what causes a movement along the supply curve? What causes a shift in the supply curve?

To determine

In the Financial market, what causes a movement along the supply curve and shift in the supply curve.

Explanation

In the Financial market those who save money are on the supply side will get interest rate for investing and saving the money Thus In financial market, quantity supplied of product is replaced by quantity supplied of money and price is replaced by rate of return or interest rate. More is the Interest rate, more is the quantity supplied of money and vice versa. Hence it causes movement along the same supply curve...

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