11. Markets for Capital and Natural Resources. Financial markets Natural Resource markets. Financial Markets. Demand for financial capital Supply of financial capital interest rate financial capital = loanable funds. Demand for Financial capital.
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-- retirement, college
-- save less today, supply falls
-- save more today, supply rises
Q*Financial market equilbrium
resource earnings – minimum required earnings
-- decrease supply
-- increase supply
-- decrease demand
(actual 1999 U.S. population = 288 million)
World will run out of