People’s wealth

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1.Explain how each of the following events would affect the supply of loanable funds curve:a. The economy is in a recession so people’s disposable income is lower.b.  The stock market is booming so people’s wealth is higher.c. The future looks a bit more grim, so expected future income is lower.d.  The real interest rate increases.2.     Why is the nominal interest rate the opportunity cost of holding money?

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