Return to problem 4. What will happen if consumption spending starts to rise? Assume no change in
Question:
Return to problem 4. What will happen if consumption spending starts to rise? Assume no change in net taxes. Show the effect on the loanable funds market, and explain what will happen to C, Ip, and G. (Note: You won’t be able to find specific numbers.)
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As consumption rises with no change in net taxes saving will begin to fall This will dr...View the full answer
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Related Book For 
Macroeconomics Principles and Applications
ISBN: 978-1111822354
6th edition
Authors: Robert E. Hall, Marc Lieberman
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