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Question 3 Compare the impact of a recession that reduces consumer income by 5 percent on the consumption of durable goods and house rentals. Suppose

Question 3

Compare the impact of a recession that reduces consumer income by 5 percent on the consumption of durable goods and house rentals. Suppose that the income elasticity of demand for durable goods is 1.5 and the income elasticity of demand for house rentals is 0.3. Based on your response, make a policy argument to support through government funding either businesses or house rentals.

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