Question: Suppose that all households increase their preference for current expenditures over future expenditures. In particular, desired saving declines at a given value of the interest

Suppose that all households increase their preference for current expenditures over future expenditures. In particular, desired saving declines at a given value of the interest rate. Illustrate and briefly explain what happens to aggregate output, Y; work effort, L; and the interest rate, R.

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