ii) Using the market for loanable fund diagram, show graphically and explain how the interest rate...

ii) Using the market for loanable fund diagram, show graphically and explain how the interest rate and investment are affected in each of the following cases. (Draw a separate diagram for each.)

a. Tax on corporate profits increase.

b. Government buys bonds from the public.

c. Tax on interest income increases.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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