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Starts out trillion then answer goes to billion. https:/ewconnect.mheducation.com/flow/connect.html ns i Saved uppose that every additional 3 percentage points in the investment rate boosts GDP

Starts out trillion then answer goes to billion.

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https:/ewconnect.mheducation.com/flow/connect.html ns i Saved uppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1 percentage point. Assume also that all investment must be financed with consumer saving Note: Investment rate = Investment/GDP The economy is currently characterized by Consumption $6 trillion Saving (= Investment) $1 trillion GDP $7 trillion If the goal is to raise the growth rate by 2 percentage points by how much must investment increase? T billion by how much must consumption decline? billion

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