Explain why the supply of loanable funds and the demand for loanable funds decreased during the global
Question:
Explain why the supply of loanable funds and the demand for loanable funds decreased during the global financial crisis of 2007-2008. Draw a graph of the loanable funds market before the crisis and use your graph to illustrate the source and effects of the crisis on saving, investment, and the real interest rate.
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The supply of loanable funds decreased during the financial crisis because the crisis created ...View the full answer
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