5. The market for loanable funds and government policy The following graph shows the market for...

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5. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of t

Homework (Ch 26) Demand Supply Supply INTEREST RATE (Percent) Demand LOANABLE FUNDS (Billions of dollars)

Scenario 1: Individual Retirement Accounts (IRAS) allow people contribution to such accounts is $5,000 per person. Now some o

national saving This change in spending causes the government to run a budget Shift the appropriate curve on the graph to ref

business economics

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SCENARIO IASIRA contorbution increases, supply of loanable funds in the market Increases. This shifts supply curve to right 9

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