professor, why increase the interest rate on borrowing can not increase the amount of loanable funds available? I think if the interest rate increase, people are willing to lend money. Then the amount of lonable funds will increase.
Can you explain "actual investment will be greater than planned investment spending when there is an unpleasant increase in inventories" again? I know it is from the demand side. Having more inventories means that consumers will buy more?
Professor, why increasing the amount of consumption spending and reducing the amount of savings decreases inerstment expenditures, and decreases long-run economic growth in the economy?