The government of Rohan has has recently increased the amount of taxes that it collects from its citizens without changing the quantity of goods that it purchases. Other things equal, in the market for loanable funds, O the equilibrium real interest rate will decrease and the quantity of investment will decrease. O the equilibrium real interest rate will increase and the quantity of investment will increase. O the equilibrium real interest rate will increase and the quantity of investment will decrease. O the equilibrium real interest rate will decrease and the quantity of investment will increase.

The government of Rohan has has recently increased the amount of taxes that it collects from its citizens without changing the quantity of goods that it purchases. Other things equal, in the market for loanable funds, O the equilibrium real interest rate will decrease and the quantity of investment will decrease. O the equilibrium real interest rate will increase and the quantity of investment will increase. O the equilibrium real interest rate will increase and the quantity of investment will decrease. O the equilibrium real interest rate will decrease and the quantity of investment will increase.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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Note: don't use chat gpt.
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