Supply of Loanable Funds
1. Why is the supply of loanable funds up sloping? why is
the demand for loanable funds down sloping? Explain the equilibrium interest
rate. List at least 3 factors that might cause the equilibrium interest rates
to change.
2. How do the concepts of accounting profit and economic
profit differ? Why is the economic profit smaller than accounting profit. What
are the three basic sources of economic profit?
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