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Suppose that government spending,G , goes down but taxes Tstays the same. a.How would this change be reflected on Investment and and Saving in the

Suppose that government spending,G , goes down but taxes Tstays the same.

a.How would this change be reflected on Investment and and Saving in the Long-run graph?

(Be sure to include which curve is affected and how, as well as whether iand I^*=NS^*go up or down.)

b.Would the change in I^*=NS^* be likely to increase or decrease future economic growth?

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