Principles of Microeconomics / Unit 3 MIC 0216 short lesson, about 20 seconds
What Shifts Saving and Borrowing
Captions available
The idea
The supply of funds shifts with income, plans for the future, and the risk and return of alternatives. The demand for funds shifts with borrowers' confidence about repaying and about their projects' returns.
In practice
New technology shifts business borrowing right; a downturn shifts it left.
Where people slip
A change in the interest rate moves along both curves. Only these other events shift them.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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