What does lower interest rate mean for ?rms

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1. All else equal, what does lower interest rate mean for ?rms? What does a lower interest rate mean for savers?

2. List the factors that affect the demand side of the loanable funds market. Which factors shifts the curve?

3. What is the difference between the nominal interest rate and the real interest rate? If in?ation is expected to increase, what will happen to the nominal interest rate and why?

Reference no: EM133273928

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