For the economy as a whole,the equilibrium interest rate is determined by

Question

Quizplus · Accepted Answer

The equilibrium interest rate for the economy as a whole is determined by the intersection of the aggregate investment demand curve and the aggregate saving supply curve. In general, as the interest rate increases, the quantity of saving will increase and the quantity of investment will decrease, resulting in a point where the two curves intersect and the market is in equilibrium.

For the Economy as a Whole,the Equilibrium Interest Rate Is