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Describe how the loanable funds market will respond to a new EPA regulation that will take effect in 12 months that reduces the marginal product
Describe how the loanable funds market will respond to a new EPA regulation that will take effect in 12 months that reduces the marginal product of capital. In your description, detail which curve is shifting and in what direction it shifts. What happens to the equilibrium real interest rate and quantities of savings and investment?
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