1. When Recession Strikes, Time to Start Saving
Piece Of Mind
When Recession Strikes, Time to Start Saving
Student name
03/25/09

2. “Hard times will persist in 2009 as consumers, squeezed by layoffs and tighter credit, delay purchases of cars and other big –ticket items”

3. The Business Cycle Expansion Peak Recession Trough
The normal condition of a rising economy
Expansion
The maximum level of Real GDP reached
Peak
Declining economy due to falling production
Recession
The lowest point ending recession
Trough
As private saving increases, private spending declines and is a contributing factor of an economic recession.

4. What is affected by a Recession?
Economic Recession
Output
Income
Employment
Trade

5. Which factors affect the Supply of Loanable Funds?
Expected Future Income
Wealth
Disposable Income

6. Investment Market Supply & Demand 2008
Your Topic Goes Here
Investment Market Supply & Demand 2008
Baseline supply & demand curves for loanable funds before the decrease in expected future income
SLF₁

7. Investment Market Supply & Demand 2009
Your Topic Goes Here
Investment Market Supply & Demand 2009
Expected Supply of Future Loanable Income Funds
SLF₁
New Eq. Rate
New Eq. Investments

8. The Overall Effects of a Recession upon the Market for Loanable Funds
Expected Future Income
Supply of Loanable Funds
Equilibrium Real Interest Rate
Equilibrium Quantity of Investments