Use a diagram like Figure 26.9 to show the effects of each of the following on the
Question:
a. Investment opportunities in the country improve owing to new technologies.
b. The government budget deficit rises.
c. Domestic citizens decide to save more.
d. Foreign investors believe that the riskiness of lending to the country has increased.
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a An increase in investment opportunities increasing the rate of return on investment projects will ...View the full answer
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