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Unformatted text preview: y × . What is the interpretation of the new parameters and ? Draw and solve for the consumption function in each case. 2. (a) What will happen to investment if the corporate tax rate increases 10%? (b) What will happen to investment if the government subsidizes borrowing for investment purposes at a rate of s% per unit of funds borrowed? 3. Policy Exercises from text book (p.168): 1, 2, 3, 5, 6...
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This note was uploaded on 04/17/2010 for the course LAPS ECON2350 a taught by Professor Barrysmithandtasso during the Spring '10 term at York University.
- Spring '10