Using the three-panel diagram, illustrate what happens in the USeconomy if consumers save more money than they
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Question:
Using the three-panel diagram, illustrate what happens in the USeconomy if consumers save more money than they otherwise wouldhave. This will shift curve (b)?the supply curve in the market forloanable funds. What happens to the interest rate? The amount offunds loaned? Net Capital Outflow? Net Exports? The real exchangerate?
ir (a) Qlot loorable NCO funds) Q( of dollars)
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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