Economists who forecast a future of secular stagnation believe that the   ▼   demand   supply   for loanable funds may be low in coming years because   A. the price of​ capital, particularly information technology goods such as​ computers, has been falling relative to the prices of other goods.   B. rising population growth in the United States will increase the demand for housing.   C. modern information technology firms require much more capital than older industrial firms.   D. firms must meet their needs for capital with higher levels of expenditure

Based on our discussion of the determinants of economic growth, answer the following questions: • ’Devoting a larger share of national output to investment would help restore rapid economic growth and rising living standards.’ Based on our discussion of the determinants of economic growth, do you agree with the above statement? Explain why. • What could the policymakers (i.e., government, central bank) do to increase the investments in the economy? • Do you think that increasing the saving rate could help to increase the economic growth? Explain why. • Do you think that increasing the saving rate is always helpful? I.e., could we increase the saving rate to, say, 90 %? What could be some of the drawbacks of increasing the saving rate to a very high level? Explain.

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In general, foreign entities:   a.  are borrowers of domestic (U.S.) loanable funds.   b.  require a greater inflation premium than domestic borrowers.   c.  are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States.   d.  are lenders in the domestic (U.S.) loanable funds.   e.  require a smaller inflation premium than domes tic borrowers.