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July 22, 2014

Homework Help: Macroeconomics

Posted by Jeanine on Saturday, December 20, 2008 at 3:28am.

If government spending (G) becomes negatively sensitive to changes in the interest rate, what effect does this have on autonomous consumption and planned investment that is crowded out? If autonomous taxes (Ta) become positively sensitive to changes in the interest rate, what effect does this have on the amount of autonomous consumption and planned investment that is crowded out?

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