1. Suppose the government borrows $20 million more next year than this year. a. How does the elasticity of the supply of loanable funds affect the size of these changes? b. How does the elasticity of the demand of loanable funds affect the size of these changes?
1. Suppose the government borrows $20 million more next year than this year. a. How does the elasticity of the supply of loanable funds affect the size of these changes? b. How does the elasticity of the demand of loanable funds affect the size of these changes?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
Section: Chapter Questions
Problem 8PA
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1. Suppose the government borrows $20 million more next year than this year.
a. How does the elasticity of the supply of loanable funds affect the size of these
changes?
b. How does the
changes?
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