question archive Assume that because of increased political instability, investors move their funds out of the county of Tara

Assume that because of increased political instability, investors move their funds out of the county of Tara

Subject:EconomicsPrice: Bought3

Assume that because of increased political instability, investors move their funds out of the county of Tara.

 

How will this decision by investors affect the interest rate and the quantity of loanable funds at the
equilibrium and what will happen to Tara's rate of economic growth? Please explain and show it using a labeled graph of the loanable funds market

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