In Figure 5(b), we assumed that household saving rises by $100 billion per year, and none of

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In Figure 5(b), we assumed that household saving rises by $100 billion per year, and none of this additional saving goes into the loanable funds market. Under this assumption, would total lending during the year be zero? Explain.

No Change in Planned Investment Spending +$0 Loanable Funds Market Consumption Spending $100 Billion $100 Billion Saving

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Macroeconomics Principles and Applications

ISBN: 978-1111822354

6th edition

Authors: Robert E. Hall, Marc Lieberman

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Question Posted: Jun 09, 2018 08:14 AM

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In Figure 5(b), we assumed that household saving rises by $100 billion per year, and none of

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No Change in Planned Investment Spending +$0 Loanable Funds Market Consumption Spending $100 Billion $100 Billion Saving +$0 +$100 Billion Safes and Mattresses

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No total lending during the year would not be zero precisely because additional saving ...View the full answer

Macroeconomics Principles and Applications

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