How does the interest rate serve to equalize the desired rate of saving and the desired rate

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How does the interest rate serve to equalize the desired rate of saving and the desired rate of investment? Would this function be served if the government placed an upper limit on the interest rate lenders could charge? How would such a law affect the amount of investment undertaken?

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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