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1. a. Using the loanable funds market, show the situation of a country where the domestic real interest rate is 3% and the world real
1. a. Using the loanable funds market, show the situation of a country where the domestic real interest rate is 3% and the world real interest rate is 3.5% Be sure to label your graphs clearly b. Is this country a borrower or a lender? Please explain in one sentence. c. Using the loanable funds market, show the situation of a country where the domestic real interest rate is 3% and the world real interest rate is 2% d. Is this country a borrower or a lender? Please explain in one sentence
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