What are the effects of capital destruction on other macro variables, including con- sumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (m = M/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (R)? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately. macro variable consumption (C) saving (S) investment (I) net exports (NX) loanable funds (L) real balance (m = M/P) real interest rate (r) nominal interest rate (R) real rental (r) nominal rental (R) (a) (b) rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous constant rise fall constant ambiguous rise fall constant rise fall rise fall constant rise fall constant rise fall constant ambiguous ambiguous ambiguous ambiguous ambiguous your answer
What are the effects of capital destruction on other macro variables, including con- sumption (C), saving (S), investment (I), net exports (NX), loanable funds (L), real balance (m = M/P), real interest rate (r), nominal interest rate (R), real rental (rk), and nominal rental (R)? Please "circle" the effects on these variables on a table of the following form for the short run and the long run separately. macro variable consumption (C) saving (S) investment (I) net exports (NX) loanable funds (L) real balance (m = M/P) real interest rate (r) nominal interest rate (R) real rental (r) nominal rental (R) (a) (b) rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous rise fall constant ambiguous constant rise fall constant ambiguous rise fall constant rise fall rise fall constant rise fall constant rise fall constant ambiguous ambiguous ambiguous ambiguous ambiguous your answer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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