Firms, households, and governments use the credit market for borrowing. The credit demand curve shows the relationship

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Firms, households, and governments use the credit market for borrowing. The credit demand curve shows the relationship between the quantity of credit demanded and the real interest rate.

a. Why does the credit demand curve slope downward?

b. What can cause a shift in the credit demand curve?

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Macroeconomics

ISBN: 9780367752279

Global Edition

Authors: Acemoglu Daron, Laibson David, List John.

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