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2. Thailand is set to run relatively Wide budget decits over the coming years, as the government seeks to support the economy amid the headwinds

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2. Thailand is set to run relatively Wide budget decits over the coming years, as the government seeks to support the economy amid the headwinds from the pandemic and a downturn in external demand. If we assume that Thailand is a closed economy, please use both Loanable Funds Market and Market for Goods and Services models to explain the effects of a decrease in investment on the Thai economy (1. the real interest rate; ii. national saving; iii. investment; iv. consumption; and v. output). (5 pts)

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