The economys equilibrium level of real interest rates depends on the willingness of households to save, as
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The economy’s equilibrium level of real interest rates depends on the willingness of households to save, as reflected in the supply curve of funds, and on the expected profitability of business investment in plant, equipment, and inventories, as reflected in the demand curve for funds.
It depends also on government fiscal and monetary policy. p-963
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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