Suppose investment demand rises in an autarky. Which of the following statements or graphs correctly indicate the long-run economic impact according to the classical model when consumption depends only on disposable income? Note: This is a multiple-answer question; thus, more than one option may be correct. a. The real interest rate rises. b. S₁ r 1₁ 12 1₁ 12 \I(r) I, S

Suppose investment demand rises in an autarky. Which of the following statements or graphs correctly indicate the long-run economic impact according to the classical model when consumption depends only on disposable income? Note: This is a multiple-answer question; thus, more than one option may be correct. a. The real interest rate rises. b. S₁ r 1₁ 12 1₁ 12 \I(r) I, S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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