AB 204 All Assignments AB 204 All Assignments | Page 9

country Somalia when it comes to investing as a whole. It is basically
land with no structure for the work force. Currently the regime in
charge has no order and this would explain why the development of
this country has slowed if not stopped.
PART 2: Loanable Funds Market
Examine each of the following scenarios in the market for loanable
funds. Explain the impacts on private savings, private investment
spending, and the rate of interest under each of the following events.
Assume the economy is autarky (closed) and it does not have trade and
capital transactions (flows) with foreign countries.
AB 204 Unit 7 Assignment Money, Banks and
the Federal Reserve System
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1. This sec tion deals with increase money supply given two scenarios
(see “a” and “b” below).