Interest Rate in Classical Theory: Determination and its role as an automatic stabilizer.

Опубликовано: 20 Январь 2025
на канале: Rudrarup Mukherjee, Economics [Faculty RTC]
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This video has two parts, the first part explains the determination of equilibrium interest rate in the market for loanable funds through the interaction of demand and supply. The second part explains the role of the interest rate as an automatic stabilizer to combat with an external disturbance on the demand side. This video explains the ineffectiveness of fiscal policy in an economy.
Reference" Froyen, R. T (2013), Macroeconomics: Theories and Policies (10th Ed.), Pearson Education India.