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Draw a correctly labeled loanable funds graph that shows what-(Answered)

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Question

Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)?

  1. The government borrows money to fund a war.
  2. Private investors become more optimistic about the economy.
  3. The government raises personal income taxes (do not consider the change in consumer saving).

 

Paper#9255532 | Written in 27-Jul-2016

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