Within the IS-LM model, what would be the effect of an autonomous increase in saving that was

Question:

Within the IS-LM model, what would be the effect of an autonomous increase in saving that was matched by a drop in consumption that is a fall in a in the consumption function?
C = a + b(Y - T)
Which schedule would shift? How would income and the interest rate be affected?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: