Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the

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Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the function shifts if:

a. The interest rate falls.

b. An investment tax credit is repealed by Congress.

c. A new president is expected to be a strong advocate of probusiness policies.

d. There is a great deal of excess capacity in the economy.

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Macroeconomics

ISBN: 9781250781284

8th Edition

Authors: William Boyes, Michael Melvin

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