FINANCIAL ECONOMICS 1

For question 3 part b. this is our assignment, what should I include in my content? Thank you for the education given.

Question 3 The stock market during 1998 and the first half of 1999 showed substantial strength. a. If the strong returns are expected to continue, how would this affect the supply of loanable funds? (25 marks) b. How might your answer changes if one argues that overall wealth in the economy has increased substantially because of the higher stock prices? (25 marks)