In the chapter, you learned that forces outside of the loanable funds market can influence the interest
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In the chapter, you learned that forces outside of the loanable funds market can influence the interest rate. Suppose the supply and demand curves in the loanable funds market are as depicted in Figure 7 of the previous chapter (Economic Growth and Rising Living Standards). Suppose that the saving curve shifts rightward by 0.75 trillion as shown in that figure, but that other influences on the interest rate prevent it from dropping at all. By how many trillions of dollars would total spending fall short of total income and total output?
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Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1111822354
6th edition
Authors: Robert E. Hall, Marc Lieberman
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