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1)In the loanable funds model and the neoclassical macroeconomic model a.Savings always equal Investment but unemployment can occur in the long run. b.Savings and Investment
1)In the loanable funds model and the neoclassical macroeconomic model
a.Savings always equal Investment but unemployment can occur in the long run.
b.Savings and Investment are rarely equal and the economy is usually in a disequilbrium state.
c.The interest rate adjusts to ensure savings equal investment.
d.Savings responds to changes in interest rates but Investment does not and leakages can be greater than injections.
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