Economic Impacts of Loanable Funds Market Changes
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Vocabulary terms detailing the effects of shifts in the supply of loanable funds on the US exchange rate, net exports, and account balances.
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6 Terms
Increase in US Loanable Funds Supply (Exchange Rate)
The exchange rate depreciates.
Increase in US Loanable Funds Supply (Current Account Balance)
The current account balance results in a deficit (Def).
Decrease in US Loanable Funds Supply (Capital and Financial Account)
The capital and financial account results in a surplus (Sur).
Decrease in US Loanable Funds Supply (Exchange Rate)
The exchange rate appreciates (Appree rates).
Decrease in US Loanable Funds Supply (Net Exports)
Net exports increase (↑).
Decrease in US Loanable Funds Supply (Current Account Balance)
The current account balance results in a surplus (Sur).