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For each of the following separate scenarios, determine what happens to the equilibrium interest rate and what happens to the equilibrium quantity of loans in
For each of the following separate scenarios, determine what happens to the equilibrium interest rate and what happens to the equilibrium quantity of loans in the domestic loanable funds market. Foreigners put more money in [ Choose ] the domestic loanable funds market. Firms are optimistic about the [ Choose ] v economy and they want to expand their production capacity. Government implements a new [ Choose ] v policy that people need to pay more taxes on the interest earned in their savings accounts. Many companies do not invest in the city [ Choose ] v because of high corporate tax rates
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