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An increase in investment increases consumption in the short run, has no effect on consumption in the long run, and has an ambiguous effect on
An increase in investment increases consumption in the short run, has no effect on consumption in the long run, and has an ambiguous effect on consumption in the Solow model of the very long run, other things equal. Discuss?
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Lets break down the effects of an increase in investment on consumption in the short run long run and very long run in the context of the Solow model ...
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