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02. Suppose that two things happen in the loanable funds market. First, because of the vaccination, now the businesses in NYC expect to return to
02. Suppose that two things happen in the loanable funds market. First, because of the vaccination, now the businesses in NYC expect to return to normal and the entrepreneurs want to invest to expand their businesses. However, they do not have enough money and need to borrow from the bank. Second, assume that people in the economy became more impatient in a sense that they want to enjoy their life right now. They do not want to postpone spending money for the future because their perspective of life changed. In this situation, what will happen to the equilibrium saving/borrowing amount in the economy and the equilibrium interest rate compared to the previous levels. Fill out each blank. The saving/borrowing equilibrium quantity will and the equilibrium interest rate will increase decrease G) be the same @ be uncertain
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