Why is the supply of loanable funds often interest inelastic?
The supply is often interest inelastic because some savers have fixed accumulation goals, i.e., they have a particular target sum in mind. If the interest rate increases, they can reach their goal with less saving. Therefore, an increase in interest rates will not bring forth more saving (lending) from those persons.
Economics
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Full-employment output is the level of output that is produced when the labor market is in equilibrium
Indicate whether the statement is true or false
Economics
In 1960, national defense comprised about _____ of federal government expenditures
a. one quarter b. one-third c. one half d. two-thirds
Economics