Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics and Its Application

Authors: walter nicholson, christopher snyder

11th edition

9781111784300, 324599102, 1111784302, 978-0324599107

Students also viewed these Economics questions