Question
Explain report in which you use the Lonable Fund model to explain the movements identified as there was a drop in interest rate in
Explain report in which you use the Lonable Fund model to explain the movements identified as " there was a drop in interest rate in 1958, this corresponds to a recession in that year. The rates then increased until 1960, from early 1950's to early 1980's interest rate trended or drifted upward. From the early 1980's on they trended or drifted downward. You must identify specific factors included in the model that affect either supply of lonable fund or the demand for loanable fund or both that would account for the cyclical movement in interest rate over business cycles? Also do the same to explain the upward the downward trends that occurred over long period?
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