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Relationship between investment and saving Premise: Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those with a surplus versus

Relationship between investment and saving

Premise: Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a capital injection market.

1.Explains in detail the function of the financial market and its influence for the injection of capital.

2.Analyzes the responsibility of the financial system in the demand for investment versus the supply of savings.

3.Using the concepts of real interest rate and expected rate of return, he contrasts the relationship between saving and capital investment.

4.Using the macroeconomic theory presented in the content of the module, it explains the relationship between the financial market and the economic growth of a country.

5.Explains the dynamic that is expected to occur between the different development policies in the injection of capital as instruments to promote the growth, sustainability and economic stability of a country.

Cites and 3 references minimun

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