ii. Suppose the demand for investment increases by RM 0.2 billion at every interest rate, show the
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Question:
ii. Suppose the demand for investment increases by RM 0.2 billion at every interest rate, show the effect of these changes on the real interest rate and quantity of loanable funds on your graph.
iii. Suppose the supply of loanable funds increases by RM 0.2 billion, show the effect of these changes on the real interest rate and quantity of loanable funds on your graph.
B. Discuss the reason why the demand for loanable funds slopes downward and the supply of loanable funds slopes upward.
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