ECON 1BB3 Lecture Notes - Lecture 7: Government Budget Balance, Loanable Funds, Negative Relationship
Course CodeECON 1BB3
ProfessorBridget O' Shaughnessy
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- 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?
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