assume a sudden collapse in the stock exchange of, Macroeconomics

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assume a sudden collapse in the stock exchange of

Assume a sudden collapse in the stock exchange of an economy is expected to reduce the future profitability of the firms of the economy.

Construct loanable funds market in a closed economy & discuss the effect of it on the rate of interest & investment. Construct loanable funds market in the context of an open economy by assuming that the home country is a small open economy.

Discuss the effect of an enhancing in the govt. budget deficit in the home country.

In this context recognize the twin deficit.

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Macroeconomics: assume a sudden collapse in the stock exchange of

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