macro - I depend negatively on r, The real interest rate,...

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13:01 Market for loanable funds  Supply of loanable funds a dollar of saving can be used to finance the purchase of domestic capital the purchase of a foreign asset so, demand for loanable funds = I+NCO recall: S depends positively on the real interest rate, r. 
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Unformatted text preview: I depend negatively on r, The real interest rate, r, is the real return on domestic assets. A fall in r makes domestic assets less attractive relative to foreign assets. 13:01 13:01...
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This note was uploaded on 11/08/2010 for the course SOCL 250 taught by Professor Linneman during the Spring '08 term at William & Mary.

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macro - I depend negatively on r, The real interest rate,...

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