Topic 4: Saving, Investment and the Financial System
Key Points
- Describe the economic role of the financial markets and financial intermediaries.
- Know the sources of national savings.
- Understand the relationship between national saving and investment.
- Use the loanable funds model to understand the determination of the real interest rate and the impact of some policy actions
- Analyze the impact of fiscal deficits on interest rates.
Overview Video
Introduction to the Financial System
Videos
Introduction to Investment
Introduction to Savings
Overview of the Loanable Funds Market
Loanable Funds Market: Supply
Loanable Funds Market: Demand
Loanable Funds Market: Equilibrium