Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain about correct option and why other options are not Economics In the market for loanable funds Keynes predicted that an increase in saving

please explain about correct option and why other options are not

image text in transcribed
Economics In the market for loanable funds Keynes predicted that an increase in saving might result in persistent disequilibrium because: Select one: A Firms would overreact to lower interest rates and invest too heavily B. Interest Rates would rise c. Consumption would be lower so businesses would see a fall in demand and reduce investment D.Interest rates would be inflexible downwards

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Local Consumption And Global Environmental Impacts Accounting, Trade-offs And Sustainability

Authors: Kuishuang Feng, Klaus Hubacek, Yang Yu

1st Edition

1317577272, 9781317577270

More Books

Students also viewed these Economics questions