Use the concepts of income effect and subsitution effect to explain why the effect on desired...

Use the concepts of income effect and subsitution effect to explain why the effect on desired savings of an increase in the expected real interest rate is potentially ambiguous. Draw the saving curve for when (a) subsitution effect dominates (b) income effect dominates.

I need help with the graphs.

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Rahul Sunny answered 1 year ago

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