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Y6 can you solve number 3a,3b, & 3c ? 3. Use the goods market diagram to analyze the effects of the following on national saving,
Y6
can you solve number 3a,3b, & 3c ?
3. Use the goods market diagram to analyze the effects of the following on national saving, investment, and the real interest rate. Explain your answer. (a) Consumers become more future-oriented and thus decide to save more. (b) The government introduces an investment tax credit (offset by other types of taxes, so total tax collections remain unchanged). (c) A large number of accessible oil deposits are discovered, which increases the expected future marginal product of oil rigs and pipelines (MPKS). It also causes an increase in expected future incomeStep by Step Solution
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