ECON MACRO 5th Edition by William McEachern

تمرين 9

(Inflation and Interest Rates) Using a demand-supply diagram for loanable funds (like the exhibit below), show what happens to the nominal interest rate and the equilibrium quantity of loans when both borrowers and lenders increase their estimates of the expected inflation rate from 2 percent to 4 percent.
The Market for Loanable Funds 11eb5b3a_fa07_5f51_a9f3_17e3281b7470