AB/204 AB204 AB 204 UNIT 6 DISCUSSION 2

AB 204 UNIT 6 DISCUSSION 2 

Unit 6: Economic Growth and Loanable Funds Market - Discussion

General Information:

To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates.

• First post made during, or before, Saturday.
• Posts on at least 3 different days.
• Responses to at least two other classmates.
• Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar.
• To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic.

Long Term Economic Growth

The Discussion topics focus on the long term economic growth, and the specific discussion areas measuring economic growth, natural resources and economic growth, the role of government and the roles of saving, investment and financial system in economic growth.

Respond to two of the following Discussion topics. Read Chapters 12 and 13, and remember to include references and links to the websites that are important contributors to your posts (comments).

Topic 2

 There are different types of financial intermediaries with different roles in the economy. Savings and investment spending are interdependent, and interest rates are determined in the loanable funds market.

1. What are the roles of financial intermediaries and loanable funds market in promoting long-run economic growth? How do financial intermediaries link saving and investment?
2. How does government borrowing crowd out investment? What is the relationship between government borrowing and budget deficits?