Graph the loanable funds market of question 3. Suppose the government imposes an interest rate ceiling of 12 percent. What consequences would the ceiling have on the loanable funds market?
Answer to relevant QuestionsWhat factors change the rate of interest? Winning an Olympic gold might generate more gold than the medal. Explain. How much wage-related rent is generated in each of the following cases? What is the relationship between a Gini coefficient and a Lorenz curve? What is aggregate supply? Draw an aggregate supply curve and explain its shape. What factors influence aggregate supply?
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