. Suppose that you have an economy where the government does not have a deficit and the demand for loanable funds and supply of loanable funds are as follows (if r = 0.2, it is an interest rate of 20% ): Demand: r = 0.6-0.0002Q Supply: r = 0.0001Q a. Graph the demand and supply of loanable funds

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Chapter8: Savings,investment And The Financial System
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. Suppose that you have an economy where the government
does not have a deficit and the demand for loanable funds and
supply of loanable funds are as follows (if r = 0.2, it is an interest
rate of 20 %): Demand: r = 0.6-0.0002Q Supply: r = 0.0001Q
a. Graph the demand and supply of loanable funds
Transcribed Image Text:. Suppose that you have an economy where the government does not have a deficit and the demand for loanable funds and supply of loanable funds are as follows (if r = 0.2, it is an interest rate of 20 %): Demand: r = 0.6-0.0002Q Supply: r = 0.0001Q a. Graph the demand and supply of loanable funds
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