question archive Use the model of loanable funds to answer the following questions: In the long—run, how does a increase in government spending affect the real interest rate (I)? Include the appropriate diagram
Use the model of loanable funds to answer the following questions: In the long—run, how does a increase in government spending affect the real interest rate (I)? Include the appropriate diagram
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Use the model of loanable funds to answer the following questions: In the long—run, how does a increase in government spending affect the real interest rate (I)? Include the appropriate diagram. How does the policy a?ect the levels of [i] national income (Y), (ii) consumption (C), and (iii) investment {I}? How do you know? (Note: assume that consumption depends only,r on disposable income.)
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