b. Suppose that new regulations make it more difficult for individuals to get loans from financial institutions. Which side of the market - savings or borrowing - would be affected by this? Show the change in your diagram and explain the predicted outcome. |
b. Suppose that new regulations make it more difficult for individuals to get loans from financial institutions. Which side of the market - savings or borrowing - would be affected by this? Show the change in your diagram and explain the predicted outcome. |
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 10RQ: Why can firms not just use their own profits for financial capital, with no need for outside...
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