loanable funds market graph shifters (2022)

Back>>>Every graph you need to know for the AP Macroeconomics Exam Summary: Use the Loanable Funds Market when illustrating a change in government spending (deficit spending which leads to the infamous "crowding out effect") or when households change their savings habits.Remember to keep that interest rate real on the vertical axis. Use the diagram of the loanable funds market to illustrate the effect of the following events on the equilibrium interest rate and investment spending. Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO. funds would affect the foreign exchange market. The real interest rate is the interest rate that is determined in the loanable funds framework. Loanable funds are defined as the aggregate amount of money that economic participants decide to invest instead of spending on consumption. The Y-axis represents . D 1 represents the private plus public demand for loanable funds . unemployment rate is 6%, and CPI is inc. at 9%. Thus, how would this increase in household savings affect the loanable funds market? real interest rates, Illustrates relationships between . The supply of loanable funds would shift right. economics. The market for loanable funds shows the interaction between borrowers and lenders that helps determine the market interest rate and the quantity of loanable funds exchanged. e. Loanable Funds Markets . The loanable funds market shows the relationship between the real interest rate and quantity of loanable funds. Then, two data sets form two lines on the graph: demand for loanable funds and supply for loanable funds. Shift one of the curves in the graph below to indicate what occurs in the loanable funds market if government spending increases without any increases in tax revenue or the money supply . . • The price that is determined in this market is the interest rate (r). 8. A. Menu. Price Level 2. The government budget deficit increases demand on the domestic loanable fund market. That will encourage domestic interest rates to rise. As interest rates rise, borrowing costs are more expensive. When investing in capital goods, businesses often borrow because of limited internal funding capacity. Thus, a budget deficit shifts the supply curve for loanable funds to the left from S1 to S2, as shown in Figure 13-4. Show the effect on the equilibrium real interest rate and quantity of funds loaned and borrowed of each of the following events: a. Topics: Supply and demand, Deficit, Public finance, Government, Finance / Pages: 3 (479 words) / Published: Dec 2nd, 2014. This rise in savings shifts the supply curve for loanable funds rightward, and reducing the equilibrium interest rate in the loanable funds market. Foreign Purchases of Domestic Assets {direct} International investments 4. The money market is like any other competitive market with just … If Congress instituted an investment tax credit, the demand for loanable funds would shift rightward. The student earned 1 point in part (c)(ii) for stating that the (Figure: Loanable Funds) The accompanying graph shows the market for loanable funds in equilibrium. The government doesn’t print money to pay for its debt it _____. The loanable funds market is a representation of decisions made by households and companies in relation to their lending and borrowing. Loanable Funds Market •The market where savers and borrowers exchange funds (Q LF) at the real rate of interest (r%). At r2, the quantity of capital demanded will be K2, as shown in Panel (b). (a decrease in the demand of loanable funds instead of an increase in supply is also acceptable) •The interest rate effects the quantity of investment in an economy (part of GDP) so a change in the interest rate will cause a shift in the AD curve. Back>>>Every graph you … This rise in savings shifts the supply curve for loanable funds rightward, and reducing the equilibrium interest rate in the loanable funds market. A cut in T will increase C and reduce Y̅ – C – G, The consequent fall in the supply of loanable funds raises r and equilibrates the market for loanable funds. AKA Crowding in. Third, we can compare the old and new equilibria. An economy is opened to international movements of capital, and a … If G increases, or T falls, S will fall if Y remains constant since . The student earned 1 point in part (a) for drawing a correctly labeled graph of the loanable funds market. Answer: This causes a decrease in the demand for loanable funds (inward shift of demand). On the X axis is the Quantity of money supplied and demanded, and on the Y axis is the nominal interest rate. answer choices . Indicate whether the policy increases, decreases or does not affect the following: a) Saving b) Investment c) the interest rate. Deficits decrease the supply of loanable funds; surpluses increase the supply of loanable funds. * The demand for funds in the loanable funds market comes from the private sector (business investment and consumer borrowing), the government sector (budget deficits) and the foreign sector. •The demand for loanable funds, or borrowing comes from households, firms, government and the foreign sector. 2) Shift in the supply of loanable funds False, it is just a movement along the supply curve True/False: a change in the interest rate will shift the supply of loanable funds i) Draw a graph of the market for loanable funds and indicate how it will be affected. Income3. a. The Savings Rate {direct} Consumer or corporate savings levels 2. Among the forces that can shift the demand curve for capital are changes in expectations, changes in technology, changes in the demands for goods and services, changes in relative factor prices, and changes in tax policy. What's it: Loanable funds market is a market where the demand and supply of loanable funds interact in an economy.This term, you will probably often find in macroeconomics books. Notably, I have added to graphs illustrating a separate shift in supply and demand for loanable funds. social science concerned with how to make the best choices under the condition of scarcity; traditionally how to optimize unlimited wants with limited resources. THE EQUILIBRIUM INTEREST RATE • This hypothetical market is known as the loanable funds market. (ii) 2 points: • One point is earned for stating that the decrease in the real interest rate caused interest-sensitive spending to increase. B) Businesses have become more optimistic about the … Shift the appropriate curve on the graph to reflect this change. Graphically show the impact of this new consumption pattern on the market for loanable funds. Continue Reading. Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO. An increase in the thriftiness–that is, the desire to save–among households will shift the supply of loanable funds to the right from the original supply curve (S 0) to S 1. In the figure, when the budget deficit reduces the supply of loanable funds, the interest rate rises from 5 percent to 6 percent. an increase in consumer wealth. . #1. Loanable Funds Markets . It is the best measure of the cost of borrowing and the benefit to lending because it is adjusted for differences in inflation. The logic of this point of view is that if the government runs a deficit, it has to borrow money just like everyone else. B) a shift in the supply curve for loanable funds to the left. •The loanable funds market is the market where those who have excess funds can supply it to those who need funds for business opportunities. Point out the similarities between money and loanable funds and the graphs of the money and loanable funds market. Draw a graph of the loanable funds market a shown in Visual 4-2. Changes in income and wealth shift the supply of loanable funds. Shifters of Supply of Loanable Funds - 1. b. โรงพยาบาลจิตเวชเลยราชนครินทร์. market for l funds in mexico mexican net capital ocomplete the first row of the table to reflect the state of the markets in mexico. Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO. Likewise, what shifts supply of loanable funds? This will lead to an equilibrium (E 1) with a lower 6% interest rate and a quantity $14 billion in loaned funds. The following graph shows the market for loanable funds in Aperto, a large open economy. ... loanable funds market graph why is the demand for loanable funds downward sloping assume that the economy is currently experiencing a balanced government budget the supply of loanable funds comes from. (b) 1 point c) Given the demand for loanable funds curve you were given and the supply of loanable funds curve you derived in (b) calculate the equilibrium interest rate and the equilibrium quantity of loanable funds in this market. The demand for loanable funds would shift right. The demand schedule for loanable funds is drawn with respect to their price. We can see this process working in the graph above. As the interest rate rises, the quantity of loanable funds demanded decreases. In this case also a change in fiscal policy will shift the IS curve. Use r = 10 - .0005Q and r = .0005Q to find the equilibrium. Question 5 Chapter 13 The market for loanable funds and government policy The following graph shows the market for loanable funds. Deficits increase the demand for loanable funds; surpluses decrease the demand for loanable funds. Transactions involve money, not goods or services. When the real interest rate decreases, investment spending increases. The Fed sells bonds. Alternatively, the interest rate is the rate of return from supplying or lending loanable funds. The result will be an increase in the equilibrium interest rate. 7. expectations of a recession. Jazzlyn Sampson. Shifters / Policies that influence the loanable funds market: Taxes and Saving (Taxes on savings reduce the incentive to save. The Structure of the Loanable Funds Model Refer to Figure 3.1, which shows the general configuration of the Loanable Funds Model. 7. •The foreign exchange markets can also affect loanable funds. 8. Module 29: The Market for Loanable Funds 251 Common Student Difficulties: At this point in the semester, students have seen so many macroeconomic models … Show the effect of this action on the market for loanable funds modeled to the left. • The price that is determined in this market is the interest rate (r). The government decreases its spending. The loanable funds market illustrates the interaction of borrowers and savers in the economy. 11/24/21, 8: 14 PM Aplia: Student Question each interest rate, causing the supply of loanable funds to shift to the left. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Loanable Funds Graph. A tight monetary In developed countries, people tend to save more, and thus companies Note: You will not be graded on your final placement of the curves on the graph, but you will need to shift them correctly in order to answer the questions that follow. As the demand drops, investments, savings, and interest rates will decrease. c) Given the demand for loanable funds curve you were given and the supply of loanable funds curve you derived in (b) calculate the equilibrium interest rate and the equilibrium quantity of loanable funds in this market. C) a movement to the right along the supply curve for loanable funds. The shift in the graph could be caused by. Loanable Funds. Incentive to Save 2. Draw a graph of the market for loanable funds. Shift the appropriate curve on the graph to reflect this change. Consumers and businesses have a demand for money, including cash and checking and savings accounts, and they use financial institutions for this purpose. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. On your graph in part (a), label point W that is consistent with the effect of the change in the nominal interest rate identified in part (c). The key graph of this module is the loanable funds market as seen below. Shifters of Long-Run Aggregate Supply - Factors of Production Shifters of Short-Run Aggregate Supply - 1. In most emerging countries people save little, as they are poor, and saving depend on how high the interest rates are. Loanable Funds vs. Money Market: whats the difference? Fiscal Policy. The interest rate is the cost of demanding or borrowing loanable funds. • One point is earned for showing a rightward shift of the supply curve for loanable funds and for showing a lower equilibrium real interest rate. Refer to the market for loanable funds, as shown in the above graph. We would expect to see a(n): loanable funds curve can be written as r = 0.0005Q. Borrowers demand loanable funds, and savers supply loanable funds. the supply of loanable funds will decrease/shift to left, increasing interest rate. Click to read full answer. Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO. The graph depicts the market for loanable funds and the real interest rate and level of capital outflows in terms of Mexican currency is given.. When a fall in the interest rate leads to higher investment spending, the resulting increase in real GDP generates exactly enough additional savings to match the rise in investment spending. The student earned an additional 1 point in part (a) for showing a correct shift of the supply of loanable funds curve and showing a lower equilibrium real interest rate. question. (ii). Shift the NCO curve to illustrate the effect of capital flight. Money Market vs Loanable funds Market This market refers to the Money Supply (M1 and M2). Who does the loanable funds market bring together? Draw an increase in Demand (a shift in the curve, not a movement along the curve) & show the new equilibrium. On the X axis is the Quantity of money supplied and demanded, and on the Y axis is the nominal interest rate. The Structure of the Loanable Funds Model Refer to Figure 3.1, which shows the general configuration of the Loanable Funds Model. d. Imports increase. Point out the similarities between money and loanable funds and the graphs of the money and loanable funds market. D) a movement to the left along the supply curve for loanable funds. Based on discussions with readers via email, it appears that my previous graph illustrating in one diagram […] The Loanable Funds Market ACTIVITY 4-5 funds market is made up of borrowers, who demand funds (Dlf), and lenders, who ... consumers to save more will shift the S curve to the right. The market is in equilibrium when the real interest rate adjusts to the point that the amount of borrowing equals the amount of saving. The Market for Loanable Funds. As can be seen, the model is similar to the microeconomic model discussed in chapter 1 and the aggregate supply - aggregate demand model from chapter 2. The demand increases , shifting the demand curve to D 1 . answer choices . On the graph above show what happens to the loanable funds market when the government increases its demand for loanable funds. The interest rate is determined in the market for loanable funds. หน้าแรก; ข้อมูลหน่วยงาน Expansionary Fiscal Policy (to the left) Shifters of Money Supply - Monetary Policy Shifters of Money Demand - 1. The supply of loanable funds curve can be written as r = 0.0005Q. More savings: If there is an increase in savings by the private sector, the supply of loanable funds increases (shifts right) causing the real interest rate to fall. i.e. Money Market vs Loanable funds Market This market refers to the Money Supply (M1 and M2). On a graph that depicts the market for loanable funds, the nominal interest rate is measured along the vertical axis. What causes shifts in loanable funds graph? • The interest rate is the return a lender receives for allowing borrowers the use of a dollar for one year, calculated as a percentage of the amount borrowed. The government doesn’t print money to pay for its debt it _____. The Market for Loanable Funds Practice For each of the following, graph the change in the market for loanable funds and describe its impact on real GDP. A graph representing the downward slope of the demand curve. Part (c) tested students’ understanding of the relationship between the real interest rate and economic growth. The loanable funds theory is an attempt to improve upon the classical theory of interest. It recognises that money can play a disturbing role in the saving and investment processes and thereby causes variations in the level of income. Thus, it is a monetary approach to the theory of interest, as distinguished from that of the classical economists. 22 July 2021. question. Consumers decide to spend less. Draw a graph of the loanable funds market a shown in Visual 4-2. Equilibrium is at the real interest rate where dollars saved equals dollars invested. Martket Loanable Funds. The price of loanable funds is the nominal interest rate. real interest rate net capital … Explore the definition and theory of loanable funds, and learn about the market prices for loanable funds and how it's affected by the rule of supply and demand. It is a variation of a market model, but what is being “bought” and “sold” is money that has been saved. What causes shifts in loanable funds graph? 1. Draw a graph Of the loanable funds market showing the effect of each of the following on the real Then, on the graph representing the market for loanable funds, shift the demand curve, the supply curve, or both to reflect the change caused by the shift in NCO. Solution for Graph the market for loanable funds such that current national saving is at a level of $500 million and the real interest rate is at 2.5% When a change in the supply of money leads to a change in the interest rate, the resulting change in real GDP causes the supply of loanable funds to change as well. supply of loanable funds increases. The demand of loanable funds comes from investment. (ii) 2 points: • One point is earned for stating that the decrease in the real interest rate caused interest-sensitive spending to increase. FRQ #6 The loanable funds market in Country Z is in equilibrium. 2. Update: Once again I have updated this post with a few minor changes. The money market is an economic model describing the supply and demand for money in a nation. The loanable funds market illustrates the interaction of borrowers and savers in the economy. Sample: 2A Score: 6 The market for loanable funds •By definition, a market is any organizational setting where buyers of a good/service can meet suppliers for economic transactions. Note: You will not be graded on your final placement of the curves on the graph, but you will need to shift them correctly in order to answer the questions that follow. 14. A) Consumers increase consumption as a fraction of disposable income. Loanable Funds Market . in a market for loanable funds.” ... will increase. On the graph above show what happens to the loanable funds market when the government increases its demand for loanable funds. • The interest rate is the return a lender receives for allowing borrowers the use of a dollar for one year, calculated as a percentage of the amount borrowed. Supply and Demand of Loanable Funds (With Explanations)Subject Matter: To improve upon the classical macro theory by taking the influence of money into account, a school of thought developed which is popularly called the neoclassical school.Supply of Loanable Funds: (4) Disinvestment. ...Demand for Loanable Funds: The demand for loanable funds comes from many sides. ...More items... The loanable funds are funds that can be shown on the graph by the interactions of the borrower and the saver.Thy is a variation in the Market model but is brought nd sold in Money. Point out that the vertical axis is the real interest rate in the loanable funds market and that the supply of loanable funds does depend on the interest rate. The demand for loanable funds is in fact the supply of bonds. Magnitudes like expected inflation, if they have an effect, is to shift the whole demand schedule. Consumers and businesses have a demand for money, including cash and checking and savings accounts, and they use financial institutions for this purpose. Use the diagram of the loanable funds market to illustrate the effect of the following events on the equilibrium interest rate and investment spending. Note: You will not be graded on your final placement of the curves on the graph, but you will need to shift them correctly in order to answer the questions that follow. Borrowers demand loanable funds and savers supply loanable funds. Click to read full answer. Neo-Classical Theory Of Interest Rate DeterminationSources of the Supply of loanable funds : The supply of loanable is derived from four sources. ...Demand for loanable funds : The demand for loanable funds comes mainly from three reasons. ...Determination of the rate of interest : The rate of interest will be determined at a point where the demand for loanable funds is equal to the supply of loanable ...More items... A graph representing the downward slope of the demand curve. Module 20 economic policy and the aggregate demand aggregate supply model Expectations For Future Economy {direct} Anticipation of economic performance Shift the appropriate curve on the graph to reflect this change. Monetary Policy3. 1. Show your work. Suppose the government provides tax incentives to increase saving. & u=a1aHR0cHM6Ly93d3cuY2hlZ2cuY29tL2hvbWV3b3JrLWhlbHAvcXVlc3Rpb25zLWFuZC1hbnN3ZXJzLzUtcXVlc3Rpb24tNS1mb2xsb3dpbmctZ3JhcGgtc2hvd3MtbWFya2V0LWxvYW5hYmxlLWZ1bmRzLWdpdmVuLXNjZW5hcmlvcy1hZGp1c3QtYXBwcm9wcmlhdC1xOTUxOTg0OTg_bXNjbGtpZD1iZmRjOTI3OGI0NGYxMWVjYjRlNjI5YTEyOTgyZjZmMw & ntb=1 '' > 4 funds for business opportunities government doesn ’ t print to... In the level of income movement along the supply of loanable funds market in Country Z is in fact supply. On the market for loanable funds market draw a of! Of saving and government | Chegg.com 7, savings, and on the axis! 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Supplied and demanded, and on the graph to help you complete the questions that follow b ) the of... Between money and loanable funds market provides another approach to the theory of interest, as are! To illustrate the effect of the relationship between the real interest rate in the market is best....0005Q to find the equilibrium interest rate decrease/shift to left, increasing interest rate a shortage of is... Tax incentives to increase saving thus companies draw a of. Of this action on the graph: demand for loanable funds a shown in Visual.. To d 1, how would this increase in demand ( a shift in supply and demand for funds... Government loanable funds market graph shifters the graphs of the market is an attempt to improve upon the classical economists back > >! As interest rates rise, borrowing costs are more expensive savings rate { direct } Consumer corporate... Supply - 1 decrease/shift to left, increasing interest rate they charge for loans competitive with. If Congress instituted an investment tax credit for individuals who save more, and CPI inc.! Expected inflation, if they have an effect, is to shift the whole demand schedule cost borrowing... A monetary approach to looking at the real interest rate rises, the cost of borrowing equals the of. B ) supply - Factors of Production Shifters of Long-Run aggregate supply model shift the whole demand.!, is to shift the whole demand schedule Assume a government provides a tax... People save little, as shown in Panel ( b ) a to. Funds ( inward shift of demand ) & p=1979a11f77a9d54769c35650fcecfbfc7b4127f01d4f9c82fd9b193d743c1800JmltdHM9MTY0OTEwMTUxNiZpZ3VpZD1iODk2OTYyNC05YjQ0LTQ3OGQtYmRiNi03NzEyZjA0N2E4ZDImaW5zaWQ9NTUxMQ & ptn=3 & fclid=bfdc7bda-b44f-11ec-bf2f-50b66f1eebcf & u=a1aHR0cHM6Ly93d3cuY2hlZ2cuY29tL2hvbWV3b3JrLWhlbHAvcXVlc3Rpb25zLWFuZC1hbnN3ZXJzLzQtbWFya2V0LWxvYW5hYmxlLWZ1bmRzLWdvdmVybm1lbnQtcG9saWN5LWZvbGxvd2luZy1ncmFwaC1zaG93cy1tYXJrZXQtbG9hbmFibGUtZnVuZHMtZ2l2ZS1xOTM2MTMwOTE_bXNjbGtpZD1iZmRjN2JkYWI0NGYxMWVjYmYyZjUwYjY2ZjFlZWJjZg ntb=1. The new equilibrium funds is in equilibrium when the government budget deficit effect is! Demand drops, investments, savings, and CPI is inc. at 9 %, spending! How high the interest rate DeterminationSources of the money market is like any other competitive market with …! Depend on how high the interest rate ( r ) increases in the equilibrium interest rate ( r ) fclid=bfdf7612-b44f-11ec-8bb9-8e2520a7dedc. Financial market funding capacity sets form two lines on the equilibrium interest rate decreases, investment spending t,! A separate shift in supply and demand for loanable funds is in fact the supply demand... Funds Markets draw a graph of the cost of borrowing and the foreign sector internal. Expectations for Future economy { direct } Consumer or corporate savings levels 2 and. Ptn=3 & fclid=bfdc1a46-b44f-11ec-afe2-5f4f9e1b2f5f & u=a1aHR0cHM6Ly93d3cuYmFydGxlYnkuY29tL3F1ZXN0aW9ucy1hbmQtYW5zd2Vycy81Li10aGUtbWFya2V0LWZvci1sb2FuYWJsZS1mdW5kcy1hbmQtZ292ZXJubWVudC1wb2xpY3ktdGhlLWZvbGxvd2luZy1ncmFwaC1zaG93cy10aGUtbWFya2V0LWZvci1sb2FuLzJkN2E5YzVlLWY0ODMtNDBkZi05NjY5LWNhN2FmMjQ3YTJiMT9tc2Nsa2lkPWJmZGMxYTQ2YjQ0ZjExZWNhZmUyNWY0ZjllMWIyZjVm & ntb=1 '' > market

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FAQs

What are the shifters of the loanable funds graph? ›

Graphically: the shift in the demand for loanable funds results in an increase in the interest rate. The amount of crowding out that occurs is the change in the quantity of loanable funds.

What are the shifters of the loanable funds market? ›

Macro: Unit 4.7 -- The Loanable Funds Market - YouTube

What factors shift demand for loanable funds? ›

Factors that cause shifts in the loanable funds' demand curve includes: changes in perceived business opportunities, government borrowings, etc. Factors that cause the supply of loanable funds to shift include private savings behaviour, and capital flows.

What factors cause the supply of funds curve to shift? ›

Factors that can shift the supply curve for goods and services, causing a different quantity to be supplied at any given price, include input prices, natural conditions, changes in technology, and government taxes, regulations, or subsidies.

What shifts the money market graph? ›

Changes in the supply and demand for money

Changes in the money supply lead to changes in the interest rate. when real GDP increases, there are more goods and services to be bought. More money will be needed to purchase them. On the other hand, a decrease in real GDP will cause the money demand curve to decrease.

Which of the following shifts the money demand curve to the right? ›

An increase the interest rate reduces the quantity of money demanded. This is shown as a movement along the money-demand curve. An increase in the price level shifts money demand to the right.

What causes demand for loanable funds to decrease? ›

The demand for loanable funds is decreasing as the interest rate increases. From the point of view of a borrower (the source of demand in the loanable funds framework), as interest rates increase, the cost of borrowing goes up and the person (or business) is less likely to borrow.

Which of the following can shift to the right the supply for loanable funds curve? ›

An increase in capital productivity will imply higher expected returns and thus an increase in the demand for loans. This will shift the demand curve of loanable funds to the right.

What shifts the demand for loanable funds quizlet? ›

Capital productivity is the main determinant of the demand for loanable funds.

What happens to loanable funds when interest rates rise? ›

When the relative demand for loanable funds increases, the interest rate goes up. When the relative supply of loanable funds increases, the interest rate declines. The demand for loanable funds is downward-sloping and its supply is upward-sloping.

What occurs in the loanable funds market quizlet? ›

The concept of the loanable funds market is? the market by which lenders (savers) and borrowers exchange funds for earlier availability at a premium, which is represented by the interest rate.

How do you graph the demand of a loanable fund? ›

Supply and Demand for Loanable Funds - YouTube

What determines the supply of loanable funds? ›

The supply of loanable funds comes from people and organizations, such as government and businesses, that have decided not to spend some of their money, but instead, save it for investment purposes. One way to make an investment is to lend money to borrowers at a rate of interest.

Why is the supply of loanable funds curve upward sloping? ›

The supply curve is upward sloping because the higher the interest rate, the more willing suppliers of loanable funds will be to lend money.

Videos

1. Lecture 8 - The Loanable Funds Market
(Economic Principles)
2. The Money Market (1 of 2)- Macro Topic 4.5
(Jacob Clifford)
3. Loanable Funds Market Model
(Teach Me Economics with Darren Landinguin)
4. The Money Market—Liquidity Preference and Loanable Funds Model [AP Economics Explained]
(Heimler's History)
5. Money Supply Shifters (2 of 2)- Macro Topic 4.5
(Jacob Clifford)
6. Loanable funds interpretation of IS curve | Macroeconomics | Khan Academy
(Khan Academy)

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