1) [4 points] In the loanable funds market model, assuming everything else is constant, which curve (supply of funds or

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1 4 Points In The Loanable Funds Market Model Assuming Everything Else Is Constant Which Curve Supply Of Funds Or 1 (27.38 KiB) Viewed 12 times

1) [4 points] In the loanable funds market model, assuming everything else is constant, which curve (supply of funds or demand for funds) is affected if there is an increase in national saving? How will equilibrium real interest rate and equilibrium quantity of loans change? 2) [3 points] When would the Federal Reserve want to carry out a monetary policy to decrease aggregate demand? 3) [4 points] What happens to the value of nominal interest rate in the economy when the Federal Reserve buys government securities? What happens in the AD-AS model when the Federal Reserve buys government securities?