Asked by zachary kastner on Jul 12, 2024
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An increase in the demand for loanable funds increases the equilibrium interest rate and increases the equilibrium level of saving.
Demand For Loanable Funds
The desire or willingness of individuals or businesses to borrow money, driven by the interest rate and economic activity.
Equilibrium Interest Rate
The interest rate at which the demand for money in an economy equals the supply of money, leading to an equilibrium in the money market.
Equilibrium Level Of Saving
The amount of saving that occurs when households' intentions to save match actual savings, often equated to investment in macroeconomics.
- Review the impact that fiscal policy holds over loanable funds, interest rate movements, and investment patterns.
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Learning Objectives
- Review the impact that fiscal policy holds over loanable funds, interest rate movements, and investment patterns.
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