Question
Currently, the US seems poised to exit the Great Recession. Suppose that in the long run, the US economy will experience strong, sustained economic growth
Currently, the US seems poised to exit the Great Recession. Suppose that in the long run, the US economy will experience strong, sustained economic growth over the next decade.
a. Using the loanable funds model, determine whether real interest rates would increase/decrease/uncertain.
b. From your diagram(s) in the previous part, determine whether the capital stock, K, in the US economy would increase/decrease/uncertain.
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
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