Question: Answer the question in details: (a) What factors would make up the demand for and supply of loanable funds? b) How do inflation and government

Answer the question in details:

(a) What factors would make up the demand for and supply of loanable funds?

b) How do inflation and government budget deficit affect interest rates?

c) Explain the meaning of the phrase "term structure of interest rates". What is a yield curve? What assumptions are necessary to construct a yield curve?

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