Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Analyze the following situations graphically in a S-I model for an open economy set-up
a. Impact of an exogenous increase in world sav- b. Impact of increased business uncertainty
ings
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S-I shows market for savings and investment. Equilibrium in this market occurs where savings is equal to investment.
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