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The President has lobbied for tax cuts for the middle class. (5 pts) Use the loanable funds model to analyze the effect of the tax

The President has lobbied for tax cuts for the middle class. (5 pts) Use the loanable funds model to analyze the effect of the tax cut on real interest rates and real exchange rates? Draw three-graph diagram and/or explain in detail (5 pts) What is the expected effect on the price of financial assets, i.e. stocks, bonds, etc? Explain.

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