PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
7th Edition
ISBN: 9781264088980
Author: Frank
Publisher: MCG
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Chapter 11, Problem 6P
(a)
To determine
Determine the changes in the real interest rate and capital investment when the investment opportunities improve the technologies.
(b)
To determine
Determine the changes in the real interest rate and capital investment when the government has deficit budget.
(c)
To determine
Determine the changes in the real interest rate and capital investment when the domestic saving increases.
(d)
To determine
Determine the changes in the real interest rate and capital investment when the foreign investors believe that the riskiness of lending to the country has increased.
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