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F. In a closed eoonom'f, howI does an increase in government spending affect Investment in the medium run? [Refer to Chapter Ir' if 1.Irou need

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F. In a closed eoonom'f, howI does an increase in government spending affect Investment in the medium run? [Refer to Chapter Ir' if 1.Irou need a refresher.] {2 marks] G. Comment on the following statement 'In a closed economy, government spending crowds out investment. In an open osonJonI},r with xed exchange rates, government spending crowds out not exports.\" (2 marks)

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