Question: Hello, can you please answer ALL the question. Thank you and much appreciated! Suppose in the economy there is a sudden rise in autonomous consumption.
Hello, can you please answer ALL the question. Thank you and much appreciated!

Suppose in the economy there is a sudden rise in autonomous consumption. Using a loanable funds model diagram, show what curve, if any shifts, and what happens to the equilibrium level of real interest rates and national saving. For each of the following, state whether its equilibrium value will go up, down, or stay the same after the rise in autonomous consumption. i) Investment, ii) Public Saving iii) Private Saving
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