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4 Cards in this Set
- Front
- Back
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Demand for loanable funds |
Wllingness of firms to borrow to engage in new investment projects |
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Supply of loanable funds |
Willingness of households and government to save |
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Factors that shift demand: |
Changes in the willingness of firms to invest 1. Rate of return on investment versus interest rate 2. Budget deficit 3. Technological change 4. Corporate taxes |
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Factors that shift supply: |
1. Changes in the willingness of households and governments to save (households want to consume today, tax benefits for saving, etc) |
