Suppose that consumption depends on the interest rate. How, if at all, does this alter the conclusions

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Suppose that consumption depends on the interest rate. How, if at all, does this alter the conclusions reached in the chapter about the impact of an increase in government purchases on investment, consumption, national saving, and the interest rate?

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Macroeconomics

ISBN: 9781464182891

9th Edition

Authors: N Gregory Mankiw

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Question Posted: Feb 29, 2024 05:01 AM

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Suppose that consumption depends on the interest rate. How, if at all, does this alter the conclusions

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If consumption depends on the interest rate it introduces an additional element into the analysis an...View the full answer

Macroeconomics

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