Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose consumption is given by C = a + b(Y - T) and investment is given by, I = f - hr. Explain why if
Suppose consumption is given by C = a + b(Y - T) and investment is given by, I = f - hr. Explain why if business confidence increases in the long run, that is, "f" increases, then, interest rates rise but there is no change to national saving and investment in the loanable funds model of the long run.
this is the original question and did not miss anything
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started