Employing loanable funds theory

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Question

You are the loan manager for a car dealership. The marketing team forecasts a huge increase in sales of your electric cars. The banks you work with for funding say that there is great pressure from the Philadelphia Federal Reserve to make their loan portfolios safer.

Employing loanable funds theory, show and explain what will happen to interest rates in the next lending cycle. Employ the correct interest rate determination model, show graphically how the model works, and to explain why your outcome assessment is correct.

Reference no: EM133247285

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