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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
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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