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N3 2. (8 marks) From 1730 to 1919, the United Kingdom experienced eight wars and the military spending rose substantially during these wars. Using the

N3

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2. (8 marks) From 1730 to 1919, the United Kingdom experienced eight wars and the military spending rose substantially during these wars. Using the loanable fund market theory, explain how a rise in military spending affects national savings, real interest rate and investment of the United Kingdom in the long run. No graph is required

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