Briefly explain the loanable funds theory of interest rate, Ask an Expert

Economics

Briefly explain the loanable funds theory of interest rate determination. How would the following situations affect the equilibrium interest rate in the loanable funds market?

(a) The states agree to abolish sales taxes.

(b) The government reduces the budget deficit.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91950497

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