Wednesday
November 26, 2014

Homework Help: Macro econ

Posted by Logan on Monday, July 17, 2006 at 12:12pm.

Why does the supply of saving slope upward? Why does the investment demand slope downward? Identify the equilibrium in the market.


If this is the standard curve, savers will save more when the rate of return, i.e. interest paid, is greater. Likewise, investors borrow less capital when the rate charged increases. The supply and demand of capital is tied directly to interest rates.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - Why does the supply of saving slope upward? Why does the investment ...
Microeconomics - Search: Consider two resource markets in which the demand ...
math - You are given a pair of equations, one representing a supply curve and ...
pre-calculus - You are given a pair of equations, one representing a supply ...
pre-calculus - You are given a pair of equations, one representing a supply ...
econ - in what ways do the reasons that explain the downward slope of the ...
economics - Can you please exlain to me if I'm wrong not just correct me. ps. ...
Economics: Market Equilibrium - Question: The market for shoes in 1997. Between ...
econ 181 - 1. The three reasons for the downward slope of the aggregated demand ...
econ - Suppose there are 1000 identical firms producing diamonds. Diamond miners...

Search
Members