Draw a graph of the Lee familys supply of loanable funds curve. In 2020, the Lee family

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Draw a graph of the Lee family’s supply of loanable funds curve.

In 2020, the Lee family had disposable income of $80,000, wealth of $140,000, and an expected future income of $80,000 a year. At a real interest rate of 4 percent a year, the Lee family saves $15,000 a year;
at a real interest rate of 6 percent a year, they save $20,000 a year; and at a real interest rate of 8 percent, they save $25,000 a year.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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