Consider an economy where the dominant industry is automobile production for domestic consumption as well as export.

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Consider an economy where the dominant industry is automobile production for domestic consumption as well as export. Now suppose the auto market is hurt by an increase in the length of time people use their cars before replacing them. Describe the probable effects of this change on 

(a) GDP, 

(b) Unemployment, 

(c) The government budget deficit, and 

(d) Interest rates.

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Essentials Of Investments

ISBN: 9780073368719

7th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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