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answer question Reducing scal decit leaves more saving available for investment, so private investment must increase. Do you agree or disagree with this statement? Explain

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Reducing scal decit leaves more saving available for investment, so private investment must increase. Do you agree or disagree with this statement? Explain your answer in the context of the ISLM model. (Hint: Consider two cases. In the rst case, the 1M curve is horizontal; in the second case, the [M curve is upward sloping.) [21'] marks]

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