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Consider the market for loanable funds in a closed economy. For each of the following scenarios, give an explanation of what would happen to the
Consider the market for loanable funds in a closed economy. For each of the following scenarios, give an explanation of what would happen to the interest rate and the level of loanable funds in the economy. Hold everything else constant. a) Individuals in this country are now expecting to live longer than before. b) There is a sudden surge of new start-ups that want to create new technologies. c) Suppose we are now dealing with an open economy. Due to a recent change in tax policy, multiple entrepreneurial firms decide to move their forthcoming expansion projects to a neighboring country
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