Question
If the government imposes a mandatory saving program, answer the following: a. Will the supply of savings shift right, left, or remain the same? b.
If the government imposes a mandatory saving program, answer the following: a. Will the supply of savings shift right, left, or remain the same? b. Will the equilibrium interest rate increase, decrease, or remain the same? c. Will the equilibrium quantity of investment increase, decrease, or remain the same? d. Will the long run economic growth rate increase, decrease, or remain the same? Explain your answer. e. Will consumption in the present increase, decrease, or remain the same? Explain your answer. f. Will consumption in the future increase, decrease, or remain the same? Explain your answer.
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