What determines the supply of loanable funds?
What determines the demand for loanable funds?
In the loanable funds model, why is the demand
curve downward sloping? Why is the supply
curve upward sloping?
An article in the Economist magazine refers to the
United Kingdom as a “small open economy.” If
this statement is correct, will the U.K. economy
experience crowding out if the government runs
a budget deficit? Briefly explain.