Business, 29.11.2020 14:40 arletsolis23p2cjls

Exhibit: Saving, InExhibit: Saving, Investment, and the Interest Rate 1 The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investment I1. What will be the new equilibrium combination of real interest rate, saving, and investment if the government increases spending, holding other factors constant? vestment, and the Interest Rate 1 The economy begins in equilibrium at point E,
representing the real interest rate r1 at which saving S1 equals desired investment I1.
What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts taxes, holding other factors constant?

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Exhibit: Saving, InExhibit: Saving, Investment, and the Interest Rate 1 The economy begins in equili...

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