Using data from the St. Louis Federal Reserve
(FRED) (http://research.stlouisfed.org/fred2/),
analyze savings and investment.
a. Find the most recent values and the values
from the same quarter three years earlier from
FRED for Gross Private Saving (GPSAVE)
and Gross Government Saving (GGSAVE).
b. Using the values found above, compute the
total gross saving in the economy for each
period.
c. Draw a graph to show the loanable funds
market in equilibrium. Explain which curve
represents total gross saving.
d. On the graph drawn in part (c), show the
effect on the loanable funds market from the
change in total gross saving between the two
periods in part (a).