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Unformatted text preview: Celticland, and there are still capital inflows like in part b. Find: i. The new loanable funds demand equation ii. The new equilibrium interest rate and Total Investment, Total Savings, Private Savings, and Investment Spending iii. How much private investment is crowded out (from part B) because of this government deficit? Why does this make sense? iv. How much has total Investment increased from part A? Is this an indeterminate change if you dont have specific numbers? v. What is the change in Interest rates from part A? Is this an indeterminate change if you dont have specific numbers?...
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This note was uploaded on 08/08/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at Wisconsin.
- Spring '08