Under the loanable funds theory, the equilibrium interest rate is determined by the interaction between the demand
Fantastic news! We've Found the answer you've been seeking!
Question:
Under the loanable funds theory, the equilibrium interest rate is determined by the interaction between the demand for and the supply of funds from financial market participants, mainly the household sector, the business sector and the government sector
Explain why the household sector, the business sector and the government sector borrow and demand loanable funds. Provide two reasons for each of these sectors.
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date: