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Chrome File Edit View History Bookmarks People Tab Window Help 67% Fri 8:36 pm Q OE Chapter 10 LTU SUMMER SCHOOL 2 X i Crowding Out Effect Defi X * Course Hero X G if taxes increase how will x + C Ims.latrobe.edu.au/pluginfile.php/5906785/mod_resource/content/9/rig20_ps4.pdf Apps AmazonBrowserBar Lenovo Poketalk with Len... Wiley Australia: Fi.. VitalSource Accou Financial Accounti... Chapter-4-CORE-... Screen Shot ruentry the one best answer and provide a justification. Also, explain who gains and who loses out ents 2020-0...39.02 pm of the loan given the unexpectedly higher inflation, and why. PART B (INDEPENDENT THINKING, REAL-WORLD APPLICATIONS AND REFLECTION) Screen Shot 2020-0...39.08 pm 7) (KEY QUESTION) Assume there is an increase in taxes by $20 million and no change in government spending. Answer the following and demonstrate your answers using a diagram. (Note: make sure you label everything in the graph correctly, and link it to your written explanations) a. What effect will this have on the demand and supply of loanable funds? How will this affect the real interest rate and the quantity of investment? b. Is the change in equilibrium investment the same, more, or less than the initial change in government spending? Why? c. Now consider that, in addition to the original increase in taxes, there is an increase in Picture 1.png government spending of $15 million. How would your answer in part a. change? Show it in a new diagram. 8) (REAL-WORLD APPLICATION) Read the textbook's case study titled "Is 'financialization' of the The Chaser economy desirable?" (pages 228-229 in the 7th edition). Summarize the various criticisms of the Chugye...TuGAZx] current financial system and express your views on the issue (ideally based on some research you conduct online). 9) (REAL-WORLD APPLICATION) Last week we talked about saving in the economy. The subject recirculated for paying taxes. Page 3 of 3 691 words English (Australia) Focus E 129% AUG 14 tv W