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Can I get an answer with an explanation? 4. (9 points) Consider a closed economy (chapter 3). Starting from an initial equilibrium, consider the effects

Can I get an answer with an explanation?

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4. (9 points) Consider a closed economy (chapter 3). Starting from an initial equilibrium, consider the effects of the following shocks on the equilibrium real interest rate. Illustrate graphically in the diagram of the loanable funds market, making sure to label the axes, curves, the initial equilibrium and the equilibrium after the shock. a) A reduction in the level of taxes. b) An increase in the marginal propensity to consume

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