Clay A.

asked • 01/24/21

what will be the effect of these changes on the economy? Show it on the graph.

Assuming a closed economy;

a- If the interest rate decreases to 2% while reducing the public expenditure by 10 units, what will be the effect of these changes on the economy? Show it on the graph.

b- Graphically what will happen if the interest rate changes while public expenditure is constant?

1 Expert Answer

By:

Laura M. answered • 01/27/21

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