Analyzing saving and investment

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[Analyzing saving and investment] Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research.stlouisfed.org/fred2/).

a. Find the most recent values and the values from the same quarter three years earlier for Gross Private Saving (GPSAVE) and Gross Government Saving (GGSAVE).

b. Using the values found in part (a), calculate the value of total saving in the economy for these two periods.

c. Draw a graph to show the loanable funds market in equilibrium. Explain which curve represents total saving.

d. On the graph you drew in part (c), show the effect on the loanable funds market from the change you calculated in part (b) for total saving between the two periods.

Reference no: EM131023262

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