Using a graph for the loanable funds market of this economy, show what are the effect on the equilibrium real interest rate and quantity of investment if a. The Government raise tax on building new houses. b. The government runs a budget deficit.
Using a graph for the loanable funds market of this economy, show what are the effect on the equilibrium real interest rate and quantity of investment if a. The Government raise tax on building new houses. b. The government runs a budget deficit.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 6P
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