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We observe that a real interest rate in the economy of Zootopia has fallen and the amount (quantity) of investment (I) has fallen. Which of
We observe that a real interest rate in the economy of Zootopia has fallen and the amount (quantity) of investment (I) has fallen. Which of the following events could have led to this outcome? (Hint: use the market for loanable funds to answer this question.) Group of answer choices The inhabitants of Zootopia fell victim of a spending craze for their Animal Star Celebration which occurs every 10 years; as a result, they forgot to save for rainy day or for retirement. The baby boomers of Zootopia reached adulthood and started buying houses which led to a housing boom. The government of Zootopia introduced investment tax credit which encouraged companies to expand their R and D and operations. Zootopia tech and car companies became pessimistic about the future of Zootopia and stopped their business expansion which involved fewer factories built and less equipment updates
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