2 (a). Draw a Loanable Funds Market for Ethiopia. (2 pts) (b). Ethiopia wants to upgrade...
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2 (a). Draw a Loanable Funds Market for Ethiopia. (2 pts) (b). Ethiopia wants to upgrade its public infrastructure. Show this optimism on the graph you drew in 2 (a). (2 pts). (c). As a result of the action in 2 (b) Ethiopia's macroeconomy is no longer in long-run equilibrium. i. Which component of Aggregate Demand is affected by 2b? Explain what will happen to Price Level and Income as a result. (2 pts). ii. How will this curve shift eventually affect C and lg spending? Explain (3 pts). 2 (a). Draw a Loanable Funds Market for Ethiopia. (2 pts) (b). Ethiopia wants to upgrade its public infrastructure. Show this optimism on the graph you drew in 2 (a). (2 pts). (c). As a result of the action in 2 (b) Ethiopia's macroeconomy is no longer in long-run equilibrium. i. Which component of Aggregate Demand is affected by 2b? Explain what will happen to Price Level and Income as a result. (2 pts). ii. How will this curve shift eventually affect C and lg spending? Explain (3 pts).
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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