Rapid Economic Growth in Botswana

Rapid Economic Growth in Botswana   Making the Connection Your Turn: Test your understanding by doing related problem 1.14 at the end of this chapter. MyEconLab The graph below shows the average annual growth rate in real GDP per capita between 1960 and 2009 for the most populous sub-Saharan countries. For the Democratic Republic of… Continue reading Rapid Economic Growth in Botswana

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Discuss the role of the financial system

Discuss the role of the financial system in facilitating long-run economic growth. 6.2 LEARNING OBJECTIVE Saving, Investment, and the Financial System ‹#› of 33 Copyright © 2015 Pearson Canada Inc. LO6.2 14 An Overview of the Financial System Financial markets Markets where financial securities, such as stocks and bonds, are bought and sold. Financial system… Continue reading Discuss the role of the financial system

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Financial intermediaries Firms

Financial intermediaries Firms, such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers. Mutual funds sell shares to savers and then use the funds to buy a portfolio of stocks, bonds, mortgages, and other financial securities. The financial system provides three key services for savers… Continue reading Financial intermediaries Firms

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The Market for Loanable Funds

The Market for Loanable Funds The demand for loanable funds is determined by the willingness of firms to borrow money to engage in new investment projects. The supply of loanable funds is determined by the willingness of households to save and by the extent of government saving or dissaving. Equilibrium in the market for loanable… Continue reading The Market for Loanable Funds

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The Effect of the Business Cycle

The Effect of the Business Cycle on the Inflation Rate Recall that the price level measures the average prices of goods and services in the economy and that the inflation rate is the percentage increase in the price level from one year to the next.   The inflation rate usually decreases during recessions and usually… Continue reading The Effect of the Business Cycle

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