1 draw a supplydemand diagram of the market for loanable

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1) Draw a supply/demand diagram of the market for "loanable funds" in the U.S. Use the "interest rate" as the "price" of loanable funds on your diagram. Show the effects of a rise in the expected inflation rate on your diagram.
2) Is your result in (1) consistent with the Supply/Demand model of the effects of a rise in inflation expectations on the T-Bill market that I drew in this week's lecture notes?

Reference no: EM13378054

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