Tuesday, November 18, 2014

Loanable Funds Market

In class students were introduced to the second macroeconomic model (6th overall) they will have to be familiar with on the upcoming quiz:  The Market for Loanable Funds.  One thing students must remember is that Investment is inversely related to Interest Rate; so interest rates increase, investment decreases....as investment is undertaken if and only if:  rate of return > interest rate.


The homework and notes are attached below.


Notes - Loanable Funds Market


Notes - Review - The Financial Sector


HW - Practice Quiz - The Financial Sector
          Read Module 30

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