question archive Assume now that the level of private saving depends positively on the real interest rate
Assume now that the level of private saving depends positively on the real interest rate
Subject:EconomicsPrice: Bought3
Assume now that the level of private saving depends positively on the real interest rate. a) Graph the loan market under this assumption. b) Now boost government spending on education. Show graphically that there is less than 100% crowding-out of I now. c) Intuitively, why is there less than 100% crowding out of I now?
