Ch 5 - Washington State University

As lenders start holding the outside money, the interest rate on loans will rise. Lenders will be better off since they are getting a higher return in the monetary equilibrium. On the other hand, borrowers are worse off. So there is a conflict between the two types of agent as the interest rate on loans rise. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download