Suppose financial innovations reduce the interest rate differential at a given level of output. How, if at
Question:
How, if at all, does this development affect output, Y, and the saving real interest rate rs ? How does it affect the borrowing real interest rate rb ?
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Output and savings interest rate will increase IS curve ...View the full answer
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Related Book For 
Microeconomics
ISBN: 978-1464187025
2nd edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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