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It is estimated that the financial crisis of 2008 led to a

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It is estimated that the financial crisis of 2008 led to a loss of $7 trillion in the real estate industry due to the decline in housing prices. The stock market decline brought another $11 trillion in losses, and retirement accounts lost $3.4 trillion.

Describe the effect of this loss on the loanable funds market. What will happen to the demand for loanable funds? Why? What will happen to the supply of loanable funds? Why? What will happen to interest rates?

Reference no: EM13379486

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