Macroeconomics 11th Edition by Michael Parkin

تمرين 11

Use the following information to work Problem.
In 2012, the Lee family had disposable income of $80,000, wealth of $140,000, and an expected future income of $80,000 a year. At a real interest rate of 4 percent a year, the Lee family saves $15,000 a year; at a real interest rate of 6 percent a year, they save $20,000 a year; and at a real interest rate of 8 percent, they save $25,000 a year.
In 2013, suppose that the stock market crashes and the default risk increases. Explain how this increase in default risk influences the Lee family's supply of loanable funds curve.