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Course: Macroeconomics?>?Unit 4
Lesson 7: The market for loanable fundsChanges in the market for loanable funds
Problem
People in Hamsterville are looking forward to a long, fun-filled retirement and are saving more money to make sure they can go on trips around the world when they retire.
What happens to the interest rate and long-run aggregate supply (LRAS) as a result of what happens to the interest rate?