Subheading: Savings, Investment and the Financial System Use what your learned in Chapter 10 for this week's draft. Draw a loanable funds market for the U.S. economy. Use the data from the WallStreet journal and the GDP report postec in the links below: GDP Report (Click here to download) WSJ Interest rates and yields (Click here to download) To draw the diagram you must pick one of the interest rates or the yields (for now assume that interest rate=yield) reported in the WSJ page. Label the vertical axis accordingly.Assume that the selected interest rate (or yield) is the equilibrium interest rate (or yield). Then use Table 3 from the GDP report to establish the level of investment in the U.S. Economy in Q2 2022 in Billions of Dollars. Use the column which has the GDP and each of its components in billions of dollars. Hint: Use the GDP fundamental macroeconomic identity. Assume that this is the equilibrium invesment level. Draw the demand and supply of loanable funds indicating the equilibrium levels only (No other data is needed) for both the interest rate and the investment level. Describe the diagram using the language from Ch10. Now assume that business expectations become pesimistic. Show how the curves in your diagram shift and explain the changes in your report using the terminology learned in class. You must use OneNote or excel to draw the graphs. Ir draft must contain 500 words. In addition, you must comment on one of your classmate's drafts. The nment must be posted in the Blackboard field created to that effect. e following points must be taken into consideration when writing your post: 1. Include the keyterms used in the chapters from our textbook presented in class. The key terms are listed at the end of each chapter with the title "Key Terms". The more terms you include, the better your grade. Each key term that you use must be highlighted in bold font (1 Point) 2. Use the Key terms from numeral 1 correctly: You must define the terms, define them correctly and apply them accurately. Applying a concept accurately means use it in its right context and within its corresponding theoretical framework. (2 point) 3. Use the theoretical frameworks (L.e. models) learned in class to make your points. You must use graphs and equations as required by the corresponding theory (2 point) 4. Your report must be logically coherent: For each point that you make, present the theoretical reasoning and/or the evidence that backs your point and explain why. Do not contradict yourself. Use deductive and inductive arguments. (1 Point) 5. Contain at least 500 words including bibliography. (1 point) Subheading: Savings, Investment and the Financial System Use what your learned in Chapter 10 for this week's draft. Draw a loanable funds market for the U.S. economy. Use the data from the WallStreet journal and the GDP report postec in the links below: GDP Report (Click here to download) WSJ Interest rates and yields (Click here to download) To draw the diagram you must pick one of the interest rates or the yields (for now assume that interest rate=yield) reported in the WSJ page. Label the vertical axis accordingly.Assume that the selected interest rate (or yield) is the equilibrium interest rate (or yield). Then use Table 3 from the GDP report to establish the level of investment in the U.S. Economy in Q2 2022 in Billions of Dollars. Use the column which has the GDP and each of its components in billions of dollars. Hint: Use the GDP fundamental macroeconomic identity. Assume that this is the equilibrium invesment level. Draw the demand and supply of loanable funds indicating the equilibrium levels only (No other data is needed) for both the interest rate and the investment level. Describe the diagram using the language from Ch10. Now assume that business expectations become pesimistic. Show how the curves in your diagram shift and explain the changes in your report using the terminology learned in class. You must use OneNote or excel to draw the graphs. Ir draft must contain 500 words. In addition, you must comment on one of your classmate's drafts. The nment must be posted in the Blackboard field created to that effect. e following points must be taken into consideration when writing your post: 1. Include the keyterms used in the chapters from our textbook presented in class. The key terms are listed at the end of each chapter with the title "Key Terms". The more terms you include, the better your grade. Each key term that you use must be highlighted in bold font (1 Point) 2. Use the Key terms from numeral 1 correctly: You must define the terms, define them correctly and apply them accurately. Applying a concept accurately means use it in its right context and within its corresponding theoretical framework. (2 point) 3. Use the theoretical frameworks (L.e. models) learned in class to make your points. You must use graphs and equations as required by the corresponding theory (2 point) 4. Your report must be logically coherent: For each point that you make, present the theoretical reasoning and/or the evidence that backs your point and explain why. Do not contradict yourself. Use deductive and inductive arguments. (1 Point) 5. Contain at least 500 words including bibliography. (1 point)
