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July 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.

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