Explain the impacts of Canadian firms learning positive economic news about the future in the context...

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Economics

Explain the impacts of Canadian firms learning positive economicnews about the future in the context of the market for loanablefunds. For example, when the price of oil increases following theunexpected news that Saudi Arabia and Russia have made up andagreed to lower production to support the price of oil. Contrastthe impacts if Canada is better approximated by a closed economyversus if Canada is better approximated by an open economy. Youranswers do not need to go outside the impacts in the market forloanable funds.

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The classical and neoclassical theories on loanable funds outline a range of factors that influence the credit market conditions Moreover a practical approach to loanable funds market provides following insights on impact of positive news about future market conditions 1 The present rate of See Answer

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