Class Notes (1,100,000)
CA (620,000)
McMaster (50,000)
ECON (1,000)
ECON 1BB3 (600)
Lecture 7

ECON 1BB3 Lecture Notes - Lecture 7: Government Budget Balance, Loanable Funds, Negative Relationship


Department
Economics
Course Code
ECON 1BB3
Professor
Bridget O' Shaughnessy
Lecture
7

This preview shows half of the first page. to view the full 1 pages of the document.

10/15


- Negative relationship between investment and the interest rate

- Positive relationship between saving and the interest rate
Interest rate and quantity of loanable funds graph


-Anything that affects investment (other than the interest rate)

-Anything that affects private saving (other than the interest rate)
-Anything that affects public saving

In the following cases, use a market diagram to show what happens to the demand and/or supply curves
What happens to the interest rate, investment, national savings, private savings and public saving?
You're Reading a Preview

Unlock to view full version