ECO 372 Week 2 participation Principles of Macroeconomics, Ch. 13: Saving, Investment, and the Financial System

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ECO 372 Week 2 participation Principles of Macroeconomics, Ch. 13: Saving, Investment, and the Financial System
ECO 372 Week 2 participation Principles of Macroeconomics, Ch. 13: Saving, Investment, and the Financial System
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ECO 372 Week 2 participation Principles of Macroeconomics, Ch. 13: Saving, Investment, and the Financial System

Consider the following as you read:

  1. Consider the role of the financial system. Be prepared to name and describe two markets that are part of the financial system in the U.S. economy.

  2. Consider why it’s important for people who own stocks and bonds to diversify their holdings. What type of financial institution makes diversification easier?

  3. Consider a change in the tax code that might increase private saving. If this policy were implemented, how would it affect the market for loanable funds?