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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 31
The Global Loanable Funds Market
Use the following information to work Problem.
Most economists agree that the problems we are witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to U.S. financial institutions-along with low interest rates-made it easier for Americans to get credit. It also allowed more families to borrow funds to pay for cars, homes, and college tuition and allowed more entrepreneurs to get loans to start new businesses and create jobs.
Provide a graphical analysis of the reasons why the interest rate was low.
Use the following information to work Problem.
Most economists agree that the problems we are witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to U.S. financial institutions-along with low interest rates-made it easier for Americans to get credit. It also allowed more families to borrow funds to pay for cars, homes, and college tuition and allowed more entrepreneurs to get loans to start new businesses and create jobs.
Provide a graphical analysis of the reasons why the interest rate was low.
Explanation
Verified
Verified
Due to net inflow of loanable fund from ...
Macroeconomics 11th Edition by Michael Parkin
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