Question: a. Using Loanable funds framework & Liquidity preference framework proves the conclusion: when income is rising during the development of the business cycle (other variables

a. Using Loanable funds framework & Liquidity preference framework proves the conclusion: when income is rising during the development of the business cycle (other variables remain constant), interest rates will increase.

b. Analyze the role of financial intermediaries in smoothing out the incompatibilities between savers and borrowers?

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