Greatly appreciate the minds and time of those who contribute. These questions a

Question

Greatly appreciate the minds and time of those who contribute. These questions are a bit beyond my understanding and I've used all resources I had. Solution and steps to get there needed.

(1) Q. What equation is related to flows into and out of financial intermediaries (NOT firms, just financial intermediaries)? Explain which components are flows in and which are flows out.

(1) A. Here I got S+(T-G)=I , through a chart. I feel this is accurate, but really am not sure. The following questions will be based on this. I do not understand them at all.

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Explanation / Answer

800=700+(500-600) i.e 800=700-100 => 800=600 i.e mkt is not in equilibrium in ordr to bring financial mrkt into equilibrium interest should decrease

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