Question: 1 . Given fixed income ( I ) , when price ( P ) increases, the purchasing power ( I / P ) Answer 1
Given fixed income I when price P increases, the purchasing power IP Answer Question increasesdecreases Consumers experience a Answer Question positivenegative wealth effect. Consumers consume and saveAnswer Question moreless Answer Question SupplyDemand of the loanable funds market Answer Question increasesdecreases shifting to the Answer Question leftright The equilibrium interest rate goes Answer Question updown It is Answer Question cheapermore expensive to borrow and make investment. Investment I Answer Question increasesdecreases According to national income identity YCIGNX aggregate output Y Answer Question decreasesincreases
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